China’s RMB136 billion ($19.7 billion) onshore
RMB bond market hasn’t hosted a truly foreign
issuer since last November. The country’s
crackdown on capital outflows are largely to blame, according
to market participants.
The National Bank of Canada (NBC) became the first North
American foreign issuer to issue a panda bond on
China’s Interbank Bond Market (CIBM) in November
last year. Previously four other overseas issuers had tapped
the CIBM market, but they were either those with major
operations in Greater China or had launched a private
The tightening of capital controls on panda bonds by PRC
authorities since late November has been cited as a key reason,
as applicants planning to use proceeds offshore are struggling
to get approval from regulators, such as the State
Administration of Foreign Exchange (Safe).
"Whenever we speak to potential issuers, they are all
thinking about it but they...