China's rising local debt market

In September 2015, the People’s Bank of China further opened up its onshore RMB bond Panda bonds market by approving two foreign commercial banks to sell Panda bonds. This is an important move that heralds the development of RMB bond markets. On the offshore RMB bond Dim Sum bonds markets,  China’s “One Belt, One Road” infrastructure development plan is expected to beef up demand for Dim Sum bonds, offering compelling opportunities for investors who want to tap into the growing bond markets in China.

Beijing has never previously let a foreign commercial bank sell Panda bonds in its rapidly growing, but largely closed, market which, at US$6.8 trillion,...