Panda Bond Sales Grow Rapidly This Year

Panda-bond issuance has grown rapidly this year, supported by the economic recovery, lower financing costs, increased varieties and rising demand for yuan assets, said Fan Ruoying, researcher at Bank of China Research Institute. A total of 73 panda bonds totaling CNY126.4 billion were issued as of Oct 12, which exceeded 2022's volume with 52 bonds totaling CNY85 billion, a rise of 62% y/y. Authorities will likely improve the efficiency of registration and issuance, including the introduction of a regular issuance plan for panda bonds, said Tian Huimin, commentator at Beijing Reform and Development Research Association. The return of red-chip companies can also help promote the expansion of the panda-bond market, said Tian. (Source: Securities Daily)