Foreign entities are increasingly utilizing China's domestic bond market, with panda bond issuance reaching a record high in the first five months of 2026.

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...