The World Still Loves Panda Bonds as Appetite for Renminbi Increases
Listen to the full version

The Chinese yuan has been under continuous pressure since the start of 2024, depreciating by more than 2% against the U.S. dollar. Despite this, the renminbi internationalization remains robust, with the appetite of foreign investors to hold renminbi assets is recovering strongly.
As of the end of April, renminbi bonds held abroad had hit 4.05 trillion yuan ($558 billion), marking the first time since February 2022 the figure had exceeded 4 trillion yuan, according to data from Bond Connect, a mutual market access scheme that enables investors from the Chinese mainland and overseas to trade in each other’s bond markets.

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- DIGEST HUB
- The Chinese yuan has depreciated by over 2% against the U.S. dollar since early 2024 but remains strong internationally with rising foreign investments.
- As of April, renminbi bonds held abroad exceeded 4 trillion yuan, and panda bonds saw significant growth, including seven new issues in June raising over 11 billion yuan.
- The Renminbi Globalization Index (RGI) rose by 9.1% in early 2024 and may increase 30% annually, driven by offshore RMB bonds and increased cross-border yuan settlements.
- Standard Chartered
- Standard Chartered anticipates strong foreign capital inflows into China's onshore bond market and positive prospects for the domestic stock market amid stabilized economic growth expectations. The Renminbi Globalization Index (RGI) from Standard Chartered reached 4963 in April and is expected to exceed 5000 in May. They also highlight increased offshore RMB bond issuance and cross-border yuan settlements contributing to the RGI's rise.
- Hithink Royal Flush
- Hithink Royal Flush is an online financial information provider. According to the article, they have reported that seven panda bonds were issued in June, raising more than 11 billion yuan, surpassing the number and amount issued in May.
- Since the start of 2024:
- The Chinese yuan has been under continuous pressure, depreciating by more than 2% against the U.S. dollar.
- First quarter of 2024:
- The average share of RMB settlement in cross-border goods trade reached 28.5%.
- First four months of 2024:
- Total offshore RMB bonds and negotiable certificates of deposit issuance jumped 61% year-on-year to 482 billion yuan.
- First four months of 2024:
- The Standard Chartered’s RGI index increased by 9.1%.
- April 2024:
- The Standard Chartered’s Renminbi Globalization Index (RGI) reached 4963.
- By April 2024:
- Panda bond custody rose from 195.38 billion yuan at the end of 2023 to 242.0 billion yuan.
- End of April 2024:
- Shanghai Clearing House reported a significant increase in panda bond custody to 242.0 billion yuan, with a 10.4 billion yuan increase.
- As of the end of April 2024:
- Renminbi bonds held abroad hit 4.05 trillion yuan ($558 billion).
- PODCAST
- MOST POPULAR