Panda bonds refer to bonds issued in China by institutions outside China. According to international regulations, if an overseas institution wants to issue bonds in a certain country, it needs to be named after the country's most symbolic mascot, so the bonds issued by overseas institutions in China are named panda bonds. Panda debt belongs to the same nature as American Yankee debt and Japanese samurai debt, and they are all foreign bonds.

Introduction of Panda Bond

Panda bond is a foreign bond, and its issue interest rate needs to be determined according to the yield level of financial bonds in the same period. The issuance of Panda bonds has promoted the further development of the bond market in China, provided advanced management technology for the international development of bonds, and effectively helped the country solve the problem under the direct financing ratio of private enterprises. International development agencies issued bonds in China and provided loans to support China enterprises, which helped China reduce the exchange rate risk of corporate loans. The issuance of Panda Bond shows that China has taken an important step in the process of liberalizing capital account control.