China targets panda bond reform, mandates global credit mapping to lure foreign capital

AI Summary

China is reforming panda bonds by enforcing stricter global credit rating standards to attract foreign capital. Regulators require credit rating agencies to uphold principles of independence and objectivity supporting China’s efforts toward yuan internationalization.

Chinese regulators moved on Tuesday to improve the quality of credit ratings for panda bonds – a yuan-denominated asset class that has seen a surge in interest from foreign sovereign and institutional investors this year as a key tool to bolster Beijing’s yuan-internationalisation push. Credit-rating agencies must adhere to the principles of independence, objectivity and prudence, according to a circular posted to the website of the National Association of Financial Market Institutional...