Dec 11, 2018 (China Knowledge) - BNP Paribas China has received approval to underwrite yuan-denominated bonds in the country, becoming the third foreign bank to receive the license after HSBC and Standard Chartered.
The conglomerate will now be able to act as a lead underwriter for panda bonds issued by foreign corporates in China with a type B license, as Beijing, in its efforts to open up, is determined to provide more opportunities to foreign investors.
Previously, BNP Paribas was only allowed to act as an advisor and syndicate member for non-financial corporate panda bonds. According to the company's deputy CEO, as more multinational corporation's mainland operations reach maturity, these companies are increasingly looking to tap on the domestic bond market to raise funds for their expansion through bond issuance.
As of yesterday, foreign entities have issued more than RMB 900 billion worth of panda bonds on the interbank market in China. Top Chinese financial regulators are also speeding up efforts to open up the country's domestic bond market, such as giving approval to rating companies in the inter-bank bond market, with more measures to simplify rules in the bond market to attract more investors.
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