China's 2026 Panda Bond Issuance Hits Record 202.475 Billion Yuan, Up 73.57%

Since the start of 2026, China's panda bond issuance has exceeded RMB 200 billion, marking a record high. As of Aug. 13, issuance reached RMB 202.475 billion, up 73.57% year on year, surpassing the full-year 2025 total of RMB 183.56 billion and the full-year 2024 total of RMB 194.8 billion. Panda bonds are renminbi-denominated bonds issued by overseas institutions in China's onshore bond market.

Since 2026, multiple overseas entities have issued bonds in China, driven mainly by the interest-rate differential and the desire to diversify dollar risk. The yield on China's 10-year government bonds stands at about 1.7%, versus roughly 4.4% for U. S. 10-year Treasuries, making renminbi funding relatively cheaper. Regulators have steadily streamlined the panda bond issuance process, lowering entry barriers and institutional costs for overseas issuers. Meanwhile, renminbi financing costs have remained in a relatively reasonable range for an extended period, helping overseas issuers cut funding costs and improve the stability of their debt structures.

Since the launch of panda bonds, 13 sovereign entities, including the Canadian province of British Columbia, Hungary, and Sharjah, United Arab Emirates, have issued panda bonds. Indonesia issued RMB 7 billion in panda bonds in July 2026, and Brazil is also advancing its first sovereign panda bond issuance, planned at RMB 5 billion.