Panda Bond Issuance Rises Over 60% This Year

The issuance of panda bonds reached CNY115.7 billion as of Sept 21 this year, a rise of over 60% y/y, according to Wind Information. Interest-rate cuts and loose liquidity provided by the People’s Bank of China amid the U.S. rate hike cycle has helped lower bond financing costs, while improved management of panda bond funds to facilitate domestic financing for overseas institutions has also made the asset class more attractive, said Li Xifeng, a researcher at CSI Pengyuan. The National Association of Financial Market Institutional Investors said this week that it will continue to promote panda-bond price discovery, enriching the number and types of investors, and improving secondary liquidity. (Source: 21st Century Business Herald)