Panda Bonds - EY

Panda BondsOverview and currentdevelopment in theinterbank marketMay 2016 OverviewA Panda bond is a Renminbi (RMB)-denominated bond issued in MainlandChina. According to international practice, a foreign financial institutionalways selects the country s mascot as the name when issuing localcurrency-denominated Bonds . As such, China s Ministry of Financenamed the Bonds Panda Bonds . The issuer of a Panda bond , always aforeign entity, can be either a financial or non-financial Panda bond is similar to Japan s Samurai bond or the US s YankeeBond. The first two Panda Bonds were issued in October 2005, by theInternational Finance Corporation (IFC) and the Asian Development Bank(ADB).New regulations are still being codified however, several practices havebeen established to meet regulator expectations : To prepare the financial reports in accordance with Chineseaccounting standards for enterprises unless the accountingstandards currently used by such issuers have been recognized asequivalent to Chinese accounting standards by the Ministry of Finance(MOF) To have the financial reports audited by an appropriately qualifiedaccounting firm in China (If the audit firm is not registered in China,the issuer may need approval from the regulators allowing theoverseas audit firm to be involved in the transaction.)

Overview A Panda Bond is a Renminbi (RMB)-denominated bond issued in Mainland China. According to international practice, a foreign financial institution

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