Recently, in response to proposal No. 1664 of the fourth session of the 13th CPPCC National Committee, the CSRC said that in order to better support and encourage overseas high-quality enterprises to issue Panda Bonds in the exchange bond market and continuously improve the internationalization level of the exchange bond market, the CSRC is stepping up the formulation of panda bond Issuance rules in the exchange bond market, Clarify the subject scope, audit and filing requirements, application of accounting standards, access of intermediaries and foreign exchange management of bonds issued by overseas institutions.
The so-called "Panda Bonds" refer to RMB bonds issued in China by overseas and multilateral financial institutions. According to international practice, when issuing local currency bonds in a country's Chinese market, it is generally named after the country's most characteristic mascot.
Statistics show that as of February 22, China has issued nine Panda Bonds this year, with a total issuance amount of 14.5 billion yuan. There are seven issuers, including two overseas enterprises and five domestic enterprises listed in Hong Kong stocks.
It is noteworthy that among the above nine Panda Bonds, only one was issued in the exchange bond market, with a total issuance amount of 1 billion yuan, and eight were issued in the inter-bank bond market, with a total issuance amount of 13.5 billion yuan. It is not difficult to see that, compared with the exchange bond market, the inter-bank bond market is the main issuing place of Panda Bonds at present.
In this regard, Cao Yuanyuan, technical director of Dongfang Jincheng research and development department, said in an interview with the reporter of Securities Daily that in recent years, due to the leading role of the inter-bank bond market in the standardization of panda bond issuance and the smoothness of institutional investment channels after being included in the "bond link", the inter-bank bond market has become the main issuing place of Panda Bonds. At present, the CSRC has paid close attention to promoting the formulation of panda bond issuance rules in the exchange bond market, which on the one hand helps to improve the standardization and facilitation of panda bond issuance in the exchange market and promote the unification of panda bond issuance rules in the inter-bank bond market and the exchange bond market; On the other hand, it helps to speed up the interconnection between the inter-bank market and the exchange market, improve investment convenience, enhance the issuer's willingness to issue Panda Bonds in the exchange bond market, and then drive the growth of the number and scale of Panda Bonds issued by the exchange.
"The CSRC is promoting the implementation of new issuance rules and expanding the scope and level of opening up. At the same time, the Shanghai Stock Exchange and Shenzhen Stock Exchange have carried out continuous exchanges and cooperation with overseas institutions. Under this background, the willingness of overseas entities to choose to finance in the exchange bond market will be further improved in 2022." Cao Yuanyuan added.
Liu Xiangdong, deputy director of the Economic Research Department of the China Center for international economic exchanges, told the Securities Daily that panda bonds have gradually become the main channel of RMB financing for overseas market players. The CSRC will promote the formulation of rules for the issuance of Panda Bonds in the exchange bond market and clarify the main scope of bonds issued by overseas institutions, which will effectively promote the standardized development of Panda Bonds in the exchange bond market and expand the issuance scale of Panda Bonds.
In addition, in order to unify and standardize the fund management of Panda Bonds and promote the healthy development of the panda bond market, the people's Bank of China and the State Administration of Foreign Exchange jointly drafted the provisions on the management of funds for domestic issuance of bonds by overseas institutions (Draft for comments) at the end of last year to further unify and standardize the fund management of Panda Bonds and promote the healthy development of the panda bond market.
\u3000\u3000 "As one of the cross-border investment and financing tools, panda bond has become an important channel to optimize the cross-border circulation of RMB and steadily promote the internationalization of RMB. The positive development of panda bond market not only provides an incremental basis for overseas issuers to broaden financing channels and optimize debt structure, but also provides diversified options for domestic and foreign investors to diversify the allocation of RMB asset portfolio." Cao Yuanyuan said that under the background of China's deep integration of economy and finance into globalization, improving the issuance rules of Panda Bonds is of great significance to enrich the overseas issuers and investors in China's bond market and form a more open and market-oriented financial system.
