China's Panda Bond Issuance Surpasses 2025 Total in First Eight Months

China's panda bond market has experienced a powerful surge, with issuance reaching 213.98 billion yuan (approximately US$32 billion) in the first eight months of the year–already surpassing the full-year figure for 2025.

Driven by favorable financing costs and continued financial opening-up, the market has attracted a diverse group of new global issuers. According to data from the People's Bank of China, issuance surged 67 percent year-on-year during the January–August period, bolstered by a growing presence of sovereign borrowers. This includes inaugural issues from countries such as Slovenia, Pakistan, Kazakhstan, and Indonesia, with nearly 30 offshore entities entering the interbank bond market.

Drivers Behind the Surge

Low Financing Costs: Domestic yuan interest rates hover around 2 percent, offering a more affordable alternative to US dollar debt, which ranges between 4 and 5 percent.

Diversified Channels: Expands cross-border RMB financing avenues to effectively meet the capital demands of international issuers.

Policy Support: Deepened high-level opening-up of China's bond market continues to attract multinational capital and sovereign participation.