Morgan Stanley(US:MS) Zheng Quan Shi Bao·2025-07-29 19:56Core Insights - The panda bond market has seen its first successful issuance by a U.S. company, Morgan Stanley, which issued a 5-year panda bond worth 2 billion yuan at a coupon rate of only 1.98, indicating strong investor demand [1] - Hungary has also entered the panda bond market with a 3-year bond of 4 billion yuan and a 5-year bond of 1 billion yuan, marking the largest single issuance by a foreign government and the first 5-year issuance by a foreign government [1] - The total issuance of panda bonds in the interbank market has exceeded 100 billion yuan this year, reflecting the growing interest of foreign investors in the domestic bond market and the increasing appeal of RMB-denominated assets [1] Market Dynamics - The low interest rate environment for RMB financing is a key factor driving the increase in panda bond issuances, alongside the deepening of China's financial market opening and the expansion of international economic and trade partnerships [2] - Since 2022, regulatory policies have been implemented to facilitate panda bond issuance, optimizing the registration process and relaxing regulations on the use of raised funds, allowing for more flexible fund allocation [2] - China's ongoing expansion of high-level openness and its extensive network of economic partners across over 150 countries have enhanced confidence in holding and using RMB, further promoting the development of the panda bond market [2] Future Outlook - The active issuance and enthusiastic subscription of panda bonds are contributing to the internationalization of the RMB, with each issuance adding new momentum to this process [2] - As financial reforms and opening-up continue, RMB assets are expected to become increasingly attractive to both foreign issuers and investors [2]