Lujiazui Photo:VCG

As of Tuesday, the total issuance of panda bonds, or yuan-denominated bonds issued by foreign financial institutions in China, had exceeded 1 trillion yuan ($137.5 billion), China Media Group reported.

It underscores the strong confidence of internationally renowned issuers in the prospects of China’s long-term development, and their continued commitment to deepening their presence in the giant Chinese market.

Since the start of the year, several international development institutions have successively issued panda bonds. The Asian Infrastructure Investment Bank (AIIB) recently completed an issuance of two-year term panda bonds worth 2 billion yuan in China’s interbank bond market, according to the CMG report.

To date, panda bonds have been issued by more than 90 institutions. And, Renminbi-denominated international financing, including panda bonds, now ranks as the second largest bonds globally by volume.

In recent years, inspired by favorable policy and market conditions, the panda bond issuance market has seen continuous expansion. 

Launched in 2005 with modest issuance volumes and initially considered a trial innovation, it has now become a crucial strategy for foreign institutions seeking financing through China's bond market.

Global Times