‘Dim sum’, ‘panda’, ‘kangaroo’: Why foreign borrowers are flocking to Asia-Pacific bond markets
Chinese onshore “panda” and offshore “dim sum” yuan bond sales reached record highs of in the first half
Foreign borrowers are increasingly turning to Asia-Pacific bond markets, driven by rising uncertainty and record borrowing. Chinese "panda" and offshore "dim sum" yuan bond sales, as well as Australian dollar "kangaroo" bond sales, reached record highs in the first half of 2026. Foreign issuers, including Germany's Commerzbank, French utility Engie, and Singapore Airlines, have issued bonds in these currencies for the first time.
The trend is part of a broader diversification of funding sources as AI investment boom and high government deficits increase borrowing needs. The Asian rush is a response to competition for capital, with borrowers advised to act early and diversify. Asian investors and central banks are also turning to these currencies as a means of diversifying away from the US dollar and taking advantage of lower borrowing rates.
While there are limits to how much borrowing these markets can sustain, the trend appears to be gaining momentum.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
