Barclays(US:BCS) Xin Hua Cai Jing·2025-10-30 13:54Core Viewpoint - The issuance of "Panda Bonds" is gaining momentum, with Barclays Bank planning to issue its first Panda Bond in the Chinese interbank bond market, indicating a growing interest from foreign institutions in the Chinese bond market [1][2]. Group 1: Panda Bond Market Overview - As of October 30, 2023, the net financing scale of Panda Bonds has surpassed 800 billion RMB, reflecting a year-on-year growth of nearly 20% [1][3]. - The Panda Bond market has seen significant activity in October, with various foreign issuers, including the UAE and Morgan Stanley, successfully issuing bonds totaling 40 billion RMB and 20 billion RMB, respectively [3]. - The total issuance volume of Panda Bonds in 2023 has reached 1,569.50 billion RMB, with a net financing scale of 821.50 billion RMB, marking an 18.7% increase compared to the previous year [3][7]. Group 2: Funding Utilization and Market Dynamics - Barclays Bank's bond proceeds will primarily be used to meet the demand for RMB-denominated assets, enhance liquidity in the offshore RMB market, and optimize the overall financing structure of the group [2]. - The average issuance interest rate of Panda Bonds has decreased significantly, providing a financing cost advantage compared to USD-denominated bonds, attracting foreign issuers [7]. Group 3: Investor and Issuer Landscape - The diversity of issuers in the Panda Bond market is increasing, with a notable rise in foreign issuers, including major banks and corporations, indicating a shift towards a "sovereign + industry" dual-driven development model [8][9]. - The holder structure of Panda Bonds is evolving, with non-legal person products accounting for 38.03% of holdings, followed by state-owned commercial banks at 19.55% and foreign institutions at 17.43% [9]. - The participation of international rating agencies and improved disclosure standards from foreign issuers are enhancing cross-border credit research, thereby enriching the funding sources for RMB bonds [9]. Group 4: Future Outlook - The Panda Bond market is expected to continue thriving due to the dual drivers of interest rate differentials and supportive policies, with projections indicating that the stock of Panda Bonds may exceed 600 billion RMB by the end of 2025 [9]. - The entry of Barclays Bank into the Panda Bond market signifies confidence in China's financial openness and the long-term potential of RMB assets, suggesting a shift towards "local currency-driven" financing strategies for foreign institutions [9].