BEIJING, July 5 (Xinhua) -- Panda bond offerings ballooned in the first half of this year thanks to their advantageous financing costs amid a bullish bond market, reported Xinhua-run Shanghai Securities News on Thursday.
From January to June, panda bond issuers raised an all-time-high 105.5 billion yuan of funds through 57 batches of panda bond offerings, up 49.3 percent and 39 percent from the same period of last year.
As Renminbi-denominated bonds sold by non-Chinese issuers in the Chinese mainland, panda bonds have been a channel of rising importance in helping overseas issuers finance on China's bond market.
Analysts attributed the eye-catching semiannual panda bond offerings data to results of a basket of policies mapped out to facilitate bond issuance by overseas issuers and their use of related proceeds in recent years.
All of these policies further relaxed restrictions over panda bond issuance and unified panda bond issuance and proceeds management rules on the interbank and exchange bond markets, providing more conveniences for overseas issuers to register and arrange panda bond issuance and disclose related information, according to a research report of Dagong Global Credit Rating Co., Ltd.
In general, the relatively low financing costs of panda bonds gave rise to the booming panda bond offerings in China in the first half of 2024 as a bullish bond market since the start of this year pressed down bond financing costs, analysts said.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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