On July 15, a press conference was held by the State Council Information Office. Zou Lan, a spokesperson and Deputy Governor of the People's Bank of China, provided an update, stating that the use of the renminbi has become more widespread in recent years in cross-border trade, investment, and financing. Overseas entities have shown increasing demand for renminbi financing.
In the first half of 2026, the issuance of Panda Bonds exceeded 160 billion yuan, marking a year-on-year increase of 69%. By the end of June 2026, the cumulative issuance of Panda Bonds had surpassed 1.3 trillion yuan. More than 110 entities have issued these bonds, covering 24 countries and regions across Asia, Europe, Africa, South America, and North America.
Growing Participation from International Issuers
An increasing number of internationally renowned institutions are participating in the Panda Bond market. International development agencies such as the Asian Infrastructure Investment Bank and the Asian Development Bank, along with major multinational corporations like Deutsche Bank, Crédit Agricole, and Bayer, have become regular foreign issuers in this market.
In recent years, foreign government agencies from countries like Hungary and Kazakhstan, as well as large multinational institutions including Morgan Stanley, UBS, and Brazil's Suzano, have successively entered the Chinese Panda Bond market. Governments of countries such as Brazil and Indonesia are also preparing to issue Panda Bonds.
Strong Demand from a Diverse Investor Base
From the investor perspective, Panda Bonds have gained widespread acceptance from domestic investors in China, including commercial banks, funds, and wealth management products. Overseas institutional investors, who often have a better understanding of the issuing entities, also regard Panda Bonds as a primary investment and trading instrument.
Market activity for Panda Bonds has been gradually increasing. In the first half of 2026, the cumulative trading volume of Panda Bonds reached 342.6 billion yuan, a 49% increase year-on-year. The number of institutions participating in Panda Bond trading was 2,493, an increase of 599 compared to the same period last year.
Supporting the Real Economy and Global Renminbi Use
Deputy Governor Zou Lan noted that when international institutions issue renminbi-denominated Panda Bonds, the raised funds are directed towards the real economy. This includes areas such as cross-border trade settlement, physical project investment, and working capital for industrial chains. This demonstrates full confidence in China's institutional environment, development prospects, and the renminbi itself.
Furthermore, this activity enriches the channels for global investors to allocate renminbi assets and helps foster a sustainable ecosystem for the use of the Chinese currency. The People's Bank of China stated that its next steps will involve continuing to steadily promote the high-quality development of the Panda Bond market and facilitating the participation of overseas institutions in the issuance and trading of these bonds within China.
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