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FINANCING SOLUTIONS

The growing use of RMB worldwide is creating new trade, investment and financing opportunities for companies doing business with or in China. As a result of these RMB flows, companies have an increasing need both onshore and offshore to raise RMB funding to finance their working capital requirements, capital expenditure and new project developments. To satisfy these needs, as well as those of the global investor community, China’s onshore financing market will gradually transition from being a “loans based” market to a more “bonds based” market.

THE RISE OF THE ONSHORE RMB BOND MARKET OVER THE PAST 10 YEARS HAS BEEN SIGNIFICANT

GROWTH IN BONDS
OUTSTANDING
DURING 2015

BOND MARKET
GROWTH RATE
DURING 2015

BOND MARKET
IN THE WORLD

TOTAL BONDS
OUTSTANDING AT
JUNE 2016

 

THE PANDA BOND MARKET HAS REOPENED TO FOREIGN ISSUERS AND IS SET FOR STRONG GROWTH IN THE COMING YEARS
 

China is beginning a transition from a market dominated by bank loan financing to a market which will become more dependent on bond financing, similar to more developed markets.

New foreign borrowing rules will better align Mainland China and free trade zone foreign debt ceilings.

Growing flexibility in solutions available to onshore and offshore corporates for their cross-border and local financing needs.

Contact your Relationship Manager for the full report.

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1) By Regulation
a. Dodd-Frank

2) By Business
a. Foreign Exchange Wholesale Disclosure

3) By Country
a. US Disclosures