CX Daily: Panda Bond Boom Follows Government Easing Effort

Panda bonds /

In Depth: Panda bond boom follows government easing effort

Panda bond issuances have jumped this year as foreign institutions have sought to take advantage of cheaper borrowing costs in China in the wake of government efforts to ease rules for how their proceeds can be used amid an ongoing drive to internationalize the yuan.

Panda bonds are yuan-denominated bonds issued by foreign institutions and sold on the Chinese mainland. While issuances of the bonds have been growing in recent years, the trend has picked up pace this year.