Second issue of Panda Bonds on China's domestic bond market through our website

Second issue of Panda Bonds on China's domestic bond market through our website

German Company Issues Second Panda Bond in China's Market

In a significant development for China's domestic bond market, a German company has issued its second Panda Bond. This move marks an important step in expanding foreign participation and diversification in China's bond market.

Panda Bonds, RMB-denominated bonds issued by foreign entities within China, offer overseas issuers a unique opportunity to tap into China’s growing onshore investor base while promoting the internationalization of the yuan.

The second German-issued Panda Bond signifies China's ongoing efforts to attract more foreign issuers and reflects the increasing openness and sophistication of its bond market. This issuance is part of the Chinese authorities' efforts to open up and liberalize the market, aiming to attract more foreign issuers.

German companies issuing Panda Bonds demonstrate greater confidence by European firms in accessing China’s capital markets, potentially supporting their footprint or investment in China’s industrial and economic sectors. Such issuances contribute to deepening financial cooperation between China and Germany, a key trade and investment partner.

Panda Bonds allow foreign issuers to raise RMB funds directly in China's bond market, which can help hedge currency risks in China-related commerce. This issuance occurred amidst China’s broader strategy to stabilize and boost foreign direct investment, equipment upgrading, and economic resilience amid global economic pressures.

Recent changes in Panda Bond issuance have been noteworthy. Issuance volumes have surpassed 100 billion yuan in 2025, reflecting a rising global appetite and increased participation by foreign governments, multilateral institutions, and foreign corporations in China’s bond market.

China has implemented measures simplifying account opening and investment procedures for overseas central banks and institutions, streamlining access for foreign investors and issuers in the bond market. These regulatory improvements underscore China’s drive for "high-standard opening-up" of its bond market to international investors and issuers, facilitating cross-border capital flow in RMB.

The entry of major foreign financial institutions like Morgan Stanley as issuers in the Panda Bond market signals enhanced market credibility and the broadening investor profile. Overall, despite some challenges in the global investment landscape, China’s policy environment is increasingly supportive of Panda Bonds as tools for foreign reinvestment and cross-border financing, aligning with broader reforms supporting foreign-invested enterprises.

The bank, which has been the top international bank for bonds registered with National Association of Financial Markets Institutional Investors (NAFMII) since 2020, raised 1 billion yuan (141 million US dollars) via 3-year Senior Preferred notes with its second Panda Bond issuance. The issuance followed the pre-approved program by the People's Bank of China (PBOC), allowing up to 8 billion yuan (1.13 billion US dollars) to be issued periodically in up to two years.

Samuel Fischer, Head of China Onshore Debt Capital Markets, expects the momentum of renminbi financing to remain strong in the near-to-medium term. For further information, contact Flora Tian at +86 10 5969 8617 or flora.tian@our website.

It's worth noting that Renminbi is the second most used currency in international trade finance as of September 2023. China's Panda Bond issuance reached a record high of 139 billion yuan (20 billion US dollars) in the first eleven months of 2023. Since 2020, the bank has completed 28 bond issuances for both domestic and international clients, including 5 panda bond issuances on CIBM with a total value exceeding 25 billion yuan (3.4 billion US dollars).

The first Panda Bond launched by a German issuer after the 3rd China-Germany High-Level Financial Dialogue. This dialogue underscores the collaborative efforts between China and Germany in fostering a conducive environment for foreign investment and financial cooperation.

1. This action by the German company marks a significant stride in the expansion of foreign participation in China's domestic bond market.
2. Panda Bonds, being RMB-denominated bonds issued by foreign entities within China, provide a unique opportunity for overseas issuers to tap into China’s growing onshore investor base.
3. The second German-issued Panda Bond shows China's ongoing efforts to attract more foreign issuers, signifying a growing openness and sophistication in its bond market.
4. Such issuances by German companies contribute to deepening financial cooperation between China and Germany, a key trade and investment partner.
5. Panda Bonds allow foreign issuers to raise RMB funds directly in China's bond market, helping them hedge currency risks in China-related commerce.
6. This issuance underscores China’s broader strategy to stabilize and boost foreign direct investment, amidst global economic pressures.
7. Recent changes in Panda Bond issuance have led to a rise in issuance volumes, reflecting a growing interest by foreign governments, multilateral institutions, and corporations.
8. Regulatory improvements in China’s bond market have streamlined access for foreign investors and issuers, facilitating cross-border capital flow in RMB.
9. The entry of major foreign financial institutions like Morgan Stanley as Panda Bond issuers signals enhanced market credibility and a broadening investor profile.
10. Despite challenges in the global investment landscape, China’s policy environment remains supportive of Panda Bonds.
11. The bank, the top international bank for bonds registered with NAFMII since 2020, raised 1 billion yuan via 3-year Senior Preferred notes with its second Panda Bond issuance.
12. Samuel Fischer, Head of China Onshore Debt Capital Markets, expects the momentum of renminbi financing to remain strong in the near-to-medium term.
13. As of September 2023, Renminbi is the second most used currency in international trade finance.
14. China's Panda Bond issuance reached a record high of 139 billion yuan in the first eleven months of 2023.
15. Since 2020, the bank has completed 28 bond issuances for both domestic and international clients, including 5 panda bond issuances on CIBM with a total value exceeding 25 billion yuan.
16. The first Panda Bond launched by a German issuer after the 3rd China-Germany High-Level Financial Dialogue, symbolizing the collaborative efforts between China and Germany in fostering a conducive environment for foreign investment and financial cooperation.
17. Personal finance management and wealth-management within the German company may play a crucial role in the success of these Panda Bond issuances.
18. The venture-capital industry in both Germany and China could potentially benefit from the growing alignment in financial cooperation between the two nations.
19. In broader terms, these Panda Bond issuances suggest increasing confidence among European firms in investing and conducting business in China.
20. The German company's success in the Chinese capital markets may have a ripple effect on other European companies looking for opportunities in China's industry sector.
21. The ongoing investment and business relationships between Germany and China reinforce the need for fluency in both languages for personal and professional growth.
22. Aside from business, lifestyle in China is attracting increasing attention from global travelers, with cars and big-wins in casino-and-gambling like blackjack, slots, lotteries, and roulette among the popular interests.
23. Real-estate continues to be a significant area of investment within China for both Chinese and international investors.
24. Data-and-cloud-computing plays a critical role in facilitating technological advancements in China's industry and finance sectors.
25. Technology, including fintech and artificial intelligence, is rapidly transforming the banking-and-insurance landscape in China.
26. Electric vehicles and the transition to renewable energy sources are crucial aspects of China's efforts towards climate change mitigation and energy self-sufficiency.
27. The entertainment industry, encompassing movies-and-TV, music, books, and celebrities, remains vibrant in China, providing unique opportunities for global collaboration.
28. Beyond the economy, global politcs and policies directly impact China's investment climate and financial relationships with foreign entities.
29. Issues such as war-and-conflicts, migration, education-and-self-development, mindfulness, and even car-accidents, fires, and learning, are all relevant topics in the broader discussion of global investment and policy-making.

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