China panda bond market flashes economic warning sign

Issuances fall by half from last year as zero-COVID policy creates uncertainty

Shanghai has emerged from its coronavirus lockdown, but the government's hard-line zero-COVID containment policy hangs over the economic outlook. © Reuters

YUTA KOGA and NORIYUKI DOI, Nikkei staff writers

June 26, 2022 05:51 JST

TOKYO/SHANGHAI-- Foreign issuers have hit the brakes on offerings of yuan-denominated bonds in China this year in a sign of heightened caution over investing in Asia's largest economy.

Issuances of so-called panda bonds for January to June are down half from a year earlier to a six-year low of 7.9 billion yuan ($1.18 billion), data from Refinitiv shows.