The panda bond market has been gaining momentum in recent years as more overseas companies，financial institutions and international agencies look to raise renminbi funds. New additions to the regulatory framework ¨C put in place over the last six months -- are likely to give the market a further boost.

In September，the People's Bank of China and the Ministry of Finance jointly issued the Interim Measures for the Administration of Issuance of Foreign Institutional Bonds in the National Interbank Bond Market (People's Bank of China/Ministry of Finance Circular 16，2018) and in January，the National Association of Financial Market Institutional Investors (NAFMII) issued the Guidelines for the Operation of Offshore Financing Instruments for Non-financial Enterprises (Draft)" (the Business Guidelines). Circular 16 divides the issuers of panda bonds into four categories，namely foreign government agencies，international development agencies，overseas financial institutions，and overseas non-financial corporate legal persons. Meanwhile，Circular 16 sets procedural rules，such as the conditions for issuance，issuance procedures，and information disclosure requirements，providing operational norms for all types of issuers. Moreover，the Business Guidelines further clarify the conditions for registration by foreign non-financial companies that issue panda bonds.

Circular 16 and the Business Guidelines are the first systematic policy measures put in place for the interbank bond market since the pilot launch of panda bonds in October 2005. The regulations coordinate the policies of the People's Bank of China，the State Administration of Foreign Exchange (SAFE)，the Ministry of Finance and the National Association of Financial Market Institutional Investors (NAFMII). They embody the experience of panda bond issuance management over the past few years and offer a foundation for the future development of these securities on the domestic interbank bond market.

Market Expansion