[People’s Daily: What Panda Bonds Reveal About Foreign Investors’ Growing Commitment to China]

Published: Jul 6, 2026 09:14

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Since the beginning of this year, panda bond issuance has heated up notably, with over 130 billion yuan issued in the first five months and the full-year figure expected to hit a record high. The large-scale issuance of panda bonds by major international issuers signals the international market’s strong recognition of China’s institutional environment, development expectations, and the renminbi. Specifically, three key reasons stand out. First, the comparative advantage in financing costs makes it more attractive to borrow in renminbi at present. Second, the continuous improvement of the basic institutional framework for panda bonds has enhanced financing convenience. Third, the popularity of panda bonds is closely linked to the accelerating pace of renminbi internationalization. The growing panda bond market is fostering a virtuous cycle with the international use of the renminbi.

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