Bank of China (HK) and HSBC breed new Pandas

Panda bond market reborn as China pushes open renminbi financing channels to convince the IMF its currency should be included in the latter's Special Drawing Rights.

Bank of China Hong Kong and HSBC earned their stripes in China's domestic bond market on Tuesday after completing successive Rmb1 billion $157 million Panda bond issues, the first by foreign financial institutions. 

The Panda bond market renminbi-denominated transactions by foreign entities has long held much promise but generally disappointed prospective borrowers by proving to be as fertile as the animal it is named after. 

Such has been the Chinese government's caution towards opening up its domestic bond market that only three foreign borrowers have executed trades in the decade prior to Bank of China and HSBC being given permission to launch their first deals....

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