Panda bonds' popularity sign of widespread, long-term investor confidence

China's financial market has experienced a notable upswing in internationalization in recent years.

Since 2015, the opening-up of China's interbank bond market has gained momentum through the issuance of a greater number of panda bonds, or yuan-denominated bonds issued by overseas institutions in the Chinese onshore market, and the involvement of international investors.

By the end of 2023, China's bond market had become the world's second largest, with a total value exceeding $22 trillion, roughly equivalent to 125 percent of that year's GDP.