The Chinese onshore bond market is the third largest in the world, with more than $6000bn of debt outstanding. Until recently however, international borrowers were not allowed to access it, limited instead to the far smaller offshore market. However, the situation has now changed and foreigners are being actively encouraged to issue renminbi-denominated debt onshore in China.
In August, Poland became the first European sovereign to tap this so-called ‘panda bond’ market with the launch of a Rmb3bn ($449m), three-year transaction.
