China sees record panda bond issuance in 2026 as foreign borrowers pile in

Panda bond issuance in China reached a record high in the first five months of 2026, with foreign entities raising 136.5 billion yuan. In May alone, 11 entities issued 14 panda bonds, totaling 26.64 billion yuan, a 246% increase year-on-year and the highest for that month on record. These yuan-denominated debt instruments, issued by foreign entities in mainland China's onshore market, saw participation from foreign governments like Kazakhstan and Pakistan, international banks such as Deutsche Bank, Morgan Stanley, and BNP Paribas, and multinational companies including Volkswagen and Henkel. This trend indicates a growing reliance on China's domestic bond market by foreign borrowers.