DBS China Captures 38% of Panda Bond Market, Wins Principal License

DBS China announced on March 4, 2026 that it underwrote 65.8 billion yuan (SG$12.2 billion (~US$9 billion)) in Panda bond issuances in 2025, capturing a 38% share of the China Interbank Bond Market (CIBM) Panda bond segment. The bank also received a principal underwriting license for non-financial corporate bonds from China's National Association of Financial Market Institutional Investors (NAFMII).

DBS Becomes Only Singapore Bank With Full CIBM Underwriting Authority

The NAFMII principal underwriting license is the most comprehensive underwriting authority the regulator issues. It allows DBS to lead-manage all onshore corporate bond issuances in the CIBM and coordinate both bank and broker-dealer syndicates for these transactions.

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DBS is now the only Singapore-headquartered bank with this capability. Ginger Cheng, Chief Executive of DBS Bank (China), said the license reflects the bank's long-term commitment to the Chinese financial market. "China's bond market is entering a new stage of high-quality development," Cheng said. "This licence enables DBS to be a crucial lever for serving cross-border capital flows."

Clifford Lee, Global Head of Investment Banking at DBS, noted the bank has acted as joint lead underwriter for all Panda bond issuances by European financial institutions since 2024. DBS is also working with Middle Eastern financial institutions on inaugural Panda bond offerings.

Panda Bond Market Grows at 26% Annually Over Five Years

Panda bonds are renminbi-denominated notes issued by foreign entities inside China. According to Wind Information data cited by DBS, total CIBM Panda bond issuances grew from 54.5 billion yuan in 2020 to 173.3 billion yuan in 2025, a compound annual growth rate of 26%.

A 2022 policy change allowing foreign issuers to send Panda bond proceeds offshore has broadened the instrument's appeal. By 2025, approximately 30% of Panda bond proceeds were being deployed outside China, making the bonds useful for global treasury operations beyond China-focused financing.

The issuer base has also expanded geographically. Morgan Stanley became the first U.S.-based firm to issue a Panda bond in July 2025, adding North American issuers to a market previously dominated by European and Asian institutions.

DBS Built Its Position Through Staged Regulatory Milestones

DBS's path to the principal license followed a deliberate progression. In February 2024, DBS China received an initial NAFMII license to underwrite debt for non-financial enterprises, becoming the first Southeast Asian bank to do so. That foundation enabled the bank to secure the full principal underwriting license by early 2026.

DBS held over 10% market share in the Panda bond segment in 2023 with 16.5 billion yuan in issuances. By 2025, that figure had grown to 65.8 billion yuan, representing a more than fourfold increase in absolute volume.

Foreign institutions held RMB 3.61 trillion in CIBM bonds by late 2025, within a market with a total custody balance of 196.7 trillion yuan at year-end.

DBS's next steps include expanding its pipeline with Middle Eastern institutions seeking inaugural Panda bond issuances in the CIBM.