Panda bond boom offers ‘historic’ yuan chance, but cheap funding not enough: Goldman Sachs

China’s booming panda bond market – yuan-denominated debt issued by foreign entities in the domestic market – offers a historic window for yuan internationalisation, according to a Goldman Sachs analyst, who also warned that lower funding costs alone could not sustain the currency’s global expansion. As the market attracted a broader mix of international issuers, gross panda bond issuance reached 160 billion yuan (US$23.7 billion) in the first half of the year, up more than 60 per cent from a...