New regulations to promote issuance of Panda bonds

China will encourage foreign institutions to raise funds through renminbi-denominated bonds in the interbank bond market, as part of efforts to accelerate the opening-up of the financial market and improve the renminbi's internationalization.

The People's Bank of China, the central bank, and the Ministry of Finance jointly issued regulations on Tuesday to promote bond issuances by foreign institutions in the Chinese mainland interbank bond market.

The foreign institutions, which are allowed to issue renminbi-denominated bonds, or the so-called Panda bonds, include international development institutions, foreign governments, overseas financial institutions and non-financial companies.