Countries and firms are borrowing billions of dollars by directly accessing China’s debt markets, which offer some of the lowest interest rates in the world.

Panda Bonds are available to some borrowers of Chinese renminbi, to finance business operations in Mainland China, even by banks and companies outside China.

Chinese regulators maintain strict safeguards on who can borrow and use RMB abroad, and for what purposes.

Companies are swapping US Dollar-denominated debt for Chinese capital, and cutting borrowing costs by over half, while reducing FX volatility and and eliminating risks of sanction and asset seizure.