China lets more cheap yuan funding flow offshore

The Business Times, carrying Bloomberg reporting, says regulators approved proceeds from more than 40% of panda bonds sold in 2026 to be taken offshore—a record share amounting to as much as 130 billion yuan. Panda bonds are yuan debt issued in mainland China by overseas borrowers. Foreign issuers raised 115.5 billion yuan through October 8, twice the amount for all of 2025. Low borrowing costs attract issuers, but currency hedging can erode the savings.