Since this year, the popularity of panda bond issuance has increased markedly. According to public data, in the first half of this year, the issuance scale of panda bonds exceeded 160 billion yuan, an increase of more than 60% over the previous year. Why are panda bonds sought after? Exchange rate flexibility and changes in interest levels are important reasons. In recent years, the flexibility of the RMB exchange rate has increased, and it has maintained basic stability at a reasonable equilibrium level, making issuers more willing to use RMB to borrow. At the same time, the current financing costs in the panda bond market are at a low level. The average interest rate for panda bonds issued by overseas institutions is about 1.85%, and the lower one can reach 1.7%. Even considering foreign exchange swap costs, it can save the issuer real money interest, so it is more attractive. In addition to these factors, the booming development of the panda bond market is fundamentally due to China's continued deepening financial market opening and steady progress in the internationalization of the RMB.

Since this year, the popularity of panda bond issuance has increased markedly. According to public data, in the first half of this year, the issuance scale of panda bonds exceeded 160 billion yuan, an increase of more than 60% over the previous year. Why are panda bonds sought after? Exchange rate flexibility and changes in interest levels are important reasons. In recent years, the flexibility of the RMB exchange rate has increased, and it has maintained basic stability at a reasonable equilibrium level, making issuers more willing to use RMB to borrow. At the same time, the current financing costs in the panda bond market are at a low level. The average interest rate for panda bonds issued by overseas institutions is about 1.85%, and the lower one can reach 1.7%. Even considering foreign exchange swap costs, it can save the issuer real money interest, so it is more attractive. In addition to these factors, the booming development of the panda bond market is fundamentally due to China's continued deepening financial market opening and steady progress in the internationalization of the RMB.