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EconomyChina Economy

China eyes broader global access to yuan assets, as panda bond demand surges

Beijing plans further reforms to make it easier to issue and trade panda bonds, as it focuses on boosting the yuan’s role as a global currency

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A staff member counts stacks of yuan banknotes at a credit cooperative in east China’s Shandong province. Photo: Xinhua
Xinyi Wuin Beijing

Officials from China’s central bank have pledged to introduce further measures to make it easier for global investors to access yuan-denominated assets, as Beijing views the recent appreciation of the yuan and surge in demand for panda bonds as reflecting rising global recognition of the Chinese currency.

Speaking at a press conference on Wednesday, officials highlighted the yuan’s strong performance in the first half of the year despite a volatile global economic landscape. The currency appreciated 3 per cent against the US dollar and 4.7 per cent against a basket of global currencies in the first six months of 2026.

“This was the result of supply and demand dynamics in the foreign exchange market and also reflected greater market confidence in China’s macro economy,” said Zou Lan, deputy governor of the People’s Bank of China.

Overseas issuers are also increasingly looking to China’s onshore debt markets, he noted.

Panda bonds – yuan-denominated bonds issued by foreign entities in mainland China’s onshore market – saw a 69 per cent surge in issuance to exceed 160 billion yuan (US$23.6 billion) in the first half of the year, according to data from the central bank.
Countries including Hungary and Kazakhstan have recently tapped the market, while major emerging economies such as Indonesia and Brazil are reportedly preparing their debut panda bond issuance.

The number of institutions trading panda bonds also rose to 2,493 in the first half of the year, an increase of 599 compared with last year, central bank data showed.

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