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China Panda Bond Issuance Drops by Half From 2021 – Nikkei

The yuan-denominated bonds are offered by mostly European automobile firms and financial institutions to balance foreign exchange risks


The yuan-denominated bonds are offered by mostly European automobile firms and financial institutions to balance foreign exchange risks.
Panda bond offerings rose in 2021 on hopes of a post-pandemic economic recovery, brushing aside the risk posed by China's real estate market downturn. This image shows a gated community in Shanghai during the recent lockdown. File photo: Reuters.

 

The issue of Panda bonds, or yuan-denominated bonds, offered by mostly European automobile firms and financial institutions to balance foreign exchange risks while raising funds for investments in China, have slumped to a six-year low, Nikkei Asia reported, citing Refinitiv data.

Just two entities – the finance wings of BMW and Mercedes-Benz Group – issued panda bonds to the tune of 7.9 billion yuan ($1.18 billion) in January to June, down from five issuers a year ago, the report said, adding that Panda bond issuances climbed to a record 32.4 billion yuan last year.

Read the full report: Nikkei Asia.

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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