Foreign issuers accounted for 54 percent of funds raised through panda bonds in China in the first half (H1) of 2026, exceeding the share raised by Chinese issuers for the first time, according to the State Administration of Foreign Exchange (SAFE).
Foreign issuers raised 58.7 billion yuan (about 8.7 billion U.S. dollars) for intended overseas use, accounting for 68 percent of their total proceeds, the SAFE said in its report on China’s international balance of payments for H1.
Panda bonds refer to renminbi-denominated bonds issued in China’s onshore market by overseas entities such as sovereign governments, international financial institutions and multinational companies.
In recent years, the panda bond market has seen steady growth, becoming increasingly attractive to global issuers. To date, cumulative panda bond issuance has exceeded 1.3 trillion yuan, with issuers from 26 countries and regions.
As of Sept. 17 this year, the issuance of the renminbi-denominated debt securities has surpassed 240 billion yuan, up 81 percent from a year earlier, according to Shanghai-based data provider Wind Information.
Analysts say that lower renminbi financing costs have been a major reason for the record-high panda bond issuance this year, while the booming panda bond market is also creating a positive interplay with the yuan’s internationalization.
The People’s Bank of China, the country’s central bank, said it will support more eligible overseas entities in issuing such bonds.
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