China sees record panda bond issuance in 2026 as foreign borrowers pile in
Beijing’s looser monetary policy, a wider bond market opening and expanding yuan internationalisation are helping drive the trend, analysts say
Foreign governments, international banks and multinational companies are increasingly tapping China’s domestic bond market, as panda bond issuance hit a record high in the first five months of the year.
A total of 11 entities sold 14 panda bonds – yuan-denominated debt instruments issued by foreign entities in mainland China’s onshore market – worth 26.64 billion yuan (US$3.7 billion) in May, up 246 per cent from a year earlier and the highest level on record for the month, according to data compiled by Fareast Credit Rating. Issuance in the first five months of 2026 reached a record 136.5 billion yuan, up 90.3 per cent year on year.
Kazakhstan raised 3.4 billion yuan through its debut panda bond issue on May 26, while Pakistan issued a 1.75 billion yuan sustainable development bond on May 15, becoming the first South Asian sovereign to tap the market. The deals broadened the range of sovereign borrowers accessing China’s domestic debt market.
Overseas participation in the market continued to rise. Five of the 11 issuers in May were pure offshore borrowers, raising a combined 13.55 billion yuan and accounting for more than half of the total.