Yuan Taking on Dollar Set to Forge $16 Billion Panda Bond Market
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Deutsche Bank AG sees China expanding its panda bond market to about 100 billion yuan ($16 billion) over five years, as President Xi Jinping promotes the yuan’s challenge to the dollar’s supremacy.
China’s relaxation of capital controls could potentially spur a 13-fold jump in outstanding onshore yuan notes by 2020, according to Liu Linan, a rates strategist at the lender in Hong Kong. International Finance Corp., the World Bank’s Washington-based financing unit, plans an offering this year after opening the panda market in 2005. Daimler AG, the first non-financial issuer, expects additional sales.