China Waives Panda Bond Fees Until 2028 as Issuance Jumps 69%
Updated
Updated · South China Morning Post · Jul 28
China Waives Panda Bond Fees Until 2028 as Issuance Jumps 69%
2 articles · Updated · South China Morning Post · Jul 28
Summary
From September through end-2028, China plans to scrap issuance and servicing fees for Panda bonds under a draft notice from China Central Depository and Clearing.
The move targets yuan-denominated borrowing by foreign issuers, as Beijing tries to deepen the global yuan debt market and build a larger offshore liquidity pool.
Panda bond issuance rose 69% in the first half, People’s Bank of China data showed, with overseas borrowers increasingly using the market to diversify away from the US dollar.
Analysts said the fee waiver trims only a small share of total borrowing costs but signals stronger policy backing; EIU said 2026 issuance has already surpassed all of 2025.
The proposal fits what economists describe as a second phase of yuan internationalisation, shifting emphasis toward the capital account amid broader de-dollarisation trends.