JPMorgan says panda bond sales to grow, diversify

JPMorgan Chase & Co and BNP Paribas SA have said foreign companies will sell more yuan bonds in China this year, after the government started allowing the two banks to underwrite corporate notes last month.

JPMorgan is having an "active dialogue" with global clients about possible issuance of so-called "panda bonds", according to Samantha Xie, China head of debt capital markets at the US bank. BNP Paribas said it may expand its onshore debt capital markets team, which now consists of three people, after it gained wider access to the market.

"China would like to see more diversity in the bond market," said Xie. "Our onshore underwriting business will focus on helping foreign issuers sell panda bonds in China."