Currently, sovereign countries, multinational corporations, and financial institutions overseas are accelerating the use of the renminbi for cross-border financing, with dim sum bonds, panda bonds, and offshore renminbi loans being issued in large volumes simultaneously.
According to data compiled by Bloomberg, as of now, the issuance scale of panda bonds (renminbi bonds issued by overseas issuers within China) and dim sum bonds (renminbi bonds issued by overseas issuers outside China) has reached 218 billion yuan this year, setting a new high for the same period, with the Indonesian government and Morgan Stanley among the participants.
At the same time, by 2025, the total financing from relevant renminbi bonds and offshore renminbi loans is expected to reach 1.15 trillion yuan, a figure that has tripled in just five years, also breaking records.
Since the end of last year, Wall Street analysts have become increasingly optimistic about the further strengthening of the renminbi. Current policy signals are also becoming more frequent. According to a report by Xinhua News Agency on February 26, the People's Bank of China issued a notice to support and regulate cross-border interbank financing in renminbi, providing liquidity for the offshore market.
<h2>Panda Bonds &#34;Transitioning from Niche to Conventional Tool,&#34; Increased Foreign Issuance</h2>
Reports indicate that more and more foreign institutions are choosing to issue renminbi bonds within China, driving the panda bond market from a past focus on multilateral institutions to a more diverse structure of industries and issuers.
Data shows that the issuance scale of panda bonds this year is approximately 51.4 billion yuan, the highest for the same period. The report also states that although overseas subsidiaries of Chinese enterprises remain the main issuers, the number of issuances by foreign borrowers has increased from 6 in 2015 to 36 last year; Morgan Stanley and Barclays are set to issue again in 2026.
Liu Wei, Deputy General Manager of the Investment Banking Center at Bank of China, stated: &#34;Offshore issuers are increasingly incorporating panda bonds into their long-term debt management frameworks, treating them as conventional financing tools. Borrower behavior has fundamentally changed.&#34;
<h2>Low Interest Rates + Trade Settlement: Two Driving Forces for Renminbi Financing Demand</h2>
The report attributes this round of warming to multiple overlapping factors: China's relatively lower interest rates, a phase of renminbi exchange rate recovery, and some investors' desire to diversify their concentration on the US dollar in asset allocation.
Cost comparisons are more intuitive in sovereign financing. When the Indonesian government issued dual-currency sovereign bonds last month, the issuance rate of its 10-year offshore renminbi bonds was about 100 basis points lower than that of its 8-year euro bonds. Against this backdrop, the market statistics indicate that (excluding issuances by Hong Kong authorities and the Chinese central government) the issuance volume of dim sum bonds since 2026 is approximately 103 billion yuan, nearly double that of the same period last year.
Meanwhile, the use of the renminbi in trade settlements has raised the actual demand for &#34;holding renminbi.&#34; Data shows that the renminbi's share in China's cross-border goods trade settlements rose to 34.5% last year, up from about 10% in 2017
Aidan Yao, an investment strategist at the asset management institution Amundi, stated: &#34;The internationalization of the renminbi is gaining real traction, especially in trade settlement and financing.&#34; He also mentioned that more renminbi settlements will bring &#34;demand spillover to the offshore bond market and create a positive cycle.&#34;
The use of the renminbi in carry trades is also increasing. Aidan Yao noted, &#34;China's renminbi is becoming an alternative choice for financing in global carry trades, aside from the yen.&#34; Samuel Tse, a senior economist at DBS Bank, stated, &#34;De-dollarization is an ongoing theme; despite tensions in the Middle East, the internationalization of the renminbi will continue,&#34; and mentioned that there were inflows into Chinese bonds and stocks last year.
<h2>Policy Side: Central Bank Issues Guidelines for Cross-Border Interbank Financing</h2>
Regarding cross-border renminbi liquidity arrangements, Xinhua News Agency reported on February 26 that to enhance the level of capital account openness, develop the offshore renminbi market, and improve macro-prudential management of cross-border capital flows, the People's Bank of China issued a relevant notice on February 26, supporting domestic banking financial institutions to standardize cross-border interbank financing business in renminbi with overseas institutions.
Cross-border interbank financing in renminbi is an important channel for domestic banks to provide renminbi liquidity to the offshore market and promote the cross-border use of the renminbi.
According to the introduction, the notice issued by the People's Bank of China on &#34;Matters Related to the Cross-Border Interbank Financing Business of Banking Financial Institutions&#34; covers various types of cross-border interbank financing in renminbi, linking the net lending balance of banking financial institutions in renminbi cross-border interbank financing to their capital levels and funding strength, promoting reasonable business development. The notice sets macro-prudential management parameters and conducts counter-cyclical adjustments based on market conditions. The setting of relevant parameters fully considers market demand and the operating conditions of banking financial institutions, which is conducive to providing stable liquidity for the offshore renminbi market and promoting the cross-border use of the renminbi

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Sovereign countries and multinational institutions abroad are accelerating the use of RMB financing. As of 2026, the issuance of various types of cross-border RMB bonds has reached 218 billion yuan, setting a new high for the same period; in 2025, related bond issuance and offshore loans reached 1.15 trillion yuan. Low interest rates have brought financing cost advantages, and the proportion of trade settlements has risen to 34.5%, jointly boosting the demand for RMB. Previously, the People's Bank of China had issued documents to regulate cross-border interbank financing in RMB, providing liquidity support for the offshore market

- Overseas sovereign countries, multinational corporations, and financial institutions are increasingly using the renminbi for cross-border financing, with panda bonds, dim sum bonds, and offshore renminbi loans seeing significant growth.  
- Panda bonds have reached a record issuance of 218 billion yuan this year, driven by entities like the Indonesian government and Morgan Stanley, while expectations of renminbi strength rise alongside support from the People's Bank of China for cross-border financing.  
- The demand for renminbi financing is propelled by lower interest rates and increased use in trade settlements, signaling a shift in borrower behavior as offshore issuers incorporate panda bonds into their long-term financing strategies.

Renminbi "cross-border financing" is soaring!