Chinese Securities Firms, Overseas Bond Underwriting Projects Compete to Launch New Offerings

Recently, China Galaxy Securities, as the lead underwriter, helped Singapore’s Dah Sing Bank (hereinafter “Dah Sing Bank”) successfully issue the “Dah Sing Bank Limited 2026 First Tranche RMB Bonds (Bond Connect)” in the interbank bond market, receiving enthusiastic subscriptions from various domestic banks and non-bank investors. Dah Sing Bank is the first—and currently the only—Singaporean bank to issue bonds in the Panda Bond market.

This is also a microcosm of Chinese securities firms integrating into the “Belt and Road” construction. Since 2025, Chinese securities firms have used investment banking and bond businesses as entry points, actively engaging in countries and regions involved in the Belt and Road Initiative. Many landmark projects and “first” products have already been implemented. Tian Lihui, a finance professor at Nankai University, told Securities Times that as RMB internationalization deepens, Chinese securities firms, serving as an important bridge between domestic and overseas markets, have unique advantages in bond pricing, underwriting and distribution, and cross-border settlement.

Panda Bond issuance heats up, Chinese securities firms build bridges

Panda Bonds are a core platform for China’s bond market opening-up and a key tool for expanding RMB cross-border use and building a onshore-offshore collaborative ecosystem. Since 2025, the Panda Bond market has continued to heat up, with issuer structures constantly optimized. According to the Shanghai Clearing House, the issuance amount of pure foreign institutional Panda Bonds in 2025 increased by over 90% year-on-year.

The aforementioned project is a typical example. Dah Sing Bank is a systemically important bank in Singapore and the first Singaporean entity to issue Panda Bonds in China. This project is the third Panda Bond successfully issued by Dah Sing Bank in China after 2019 and 2024. The joint lead underwriters and bookrunners include CITIC Securities, China Galaxy Securities, and China Securities Construction Investment Securities.

China Galaxy Securities stated that the issuance scale of this project was 5 billion yuan, with a coupon rate of 1.83%. Domestic banks and non-bank investors subscribed enthusiastically, with overseas investors accounting for over 20%, demonstrating a good market demonstration effect. “This marks a shift from initial ‘testing the waters’ by foreign institutions in Panda Bonds to viewing them as a long-term, stable RMB financing tool, fully demonstrating the continued attractiveness of China’s financial markets,” China Galaxy Securities said.

“As a firm that has issued Panda Bonds multiple times, we fully recognize the depth and resilience of the onshore RMB market. Even amid complex geopolitical environments, the market remains stable,” said Gao Jingjing, head of Central Funds, Research, and Client Rights at Dah Sing Bank Group. She added that the bank will continue to deepen long-term cooperation with Chinese RMB investors and support the sustained development of the Panda Bond market.

This is also a typical case of deepening regional financial cooperation. Tian Lihui believes that as the Belt and Road Initiative enters a new stage of high-quality development, Chinese securities firms’ bond businesses are facing great opportunities. Infrastructure construction, green energy transformation, and industrial chain connectivity in participating countries generate huge financing demands. RMB-denominated tools like Panda Bonds and Belt and Road Bonds precisely meet these countries’ needs for diversified financing channels and RMB asset allocation.

Securities Times found that among the landmark Panda Bond projects issued since 2025, many Chinese securities firms have played important roles.

In October 2025, Shenwan Hongyuan Securities helped the government of Sharjah, UAE, successfully issue 2 billion yuan in Panda Bonds, with a coupon rate of 2.7% and a subscription multiple of 1.77 times. This was the first sovereign Panda Bond in which a securities firm served as the lead underwriter.

In July 2025, CITIC Securities helped the Asian Infrastructure Investment Bank (AIIB) successfully issue 2 billion yuan in Panda Bonds, with a coupon rate of 1.64% and a subscription multiple of 3.2 times. AIIB, initiated by China and jointly established by 57 countries, promotes sustainable development in Asia through infrastructure and productive investments, creating wealth and improving connectivity.

In February 2026, China Galaxy Securities assisted Malaysia’s Lian Chang Bank (hereinafter “Lian Chang Bank”) in successfully issuing the “Lian Chang Bank Limited 2026 First Tranche RMB Bonds (Bond Connect)” in the interbank bond market. Lian Chang Bank is also the first Malaysian entity to issue Panda Bonds in China in the past five years.

Among these issuers, Malaysia and the UAE are key participants in the Belt and Road Initiative, while AIIB directly serves Asian infrastructure connectivity. The successful landing of these Panda Bonds reflects the bridging role of Chinese securities firms in financing the Belt and Road construction. Supporting China and BRI partner countries’ connectivity extends beyond Panda Bonds alone.

Continuous innovation, actively integrating into the Belt and Road

More securities firms are participating in Belt and Road bond underwriting. According to data recently released by the China Securities Association, in 2025, 28 securities firms served as lead underwriters for Belt and Road bonds, underwriting 23 bonds totaling 22.21 billion yuan. In 2024, 22 firms underwrote 19 bonds with a total of 23.355 billion yuan.

Meanwhile, securities firms are innovating bond varieties, with many “first” products launched. For example, in January 2026, Huatai United Securities helped Ningbo Ocean Shipping issue the country’s first Belt and Road Blue Company Bond, which is also the first dual-label bond in the country combining “Belt and Road” and “Blue Bond” labels.

In helping Chinese companies go global, securities firms are also assisting foreign institutions in issuing bonds, promoting RMB internationalization. In September 2025, CICC, as the global coordinator and settlement bank, successfully helped Kazakhstan Development Bank complete the issuance and listing of 2 billion yuan in 3-year offshore RMB bonds, with a coupon rate of 3.35%. This issuance set multiple market records: it was Kazakhstan’s first RMB bond issued and listed globally, the first RMB bond issued by a Central Asian issuer in a public offering, and the first RMB bond by a Central Asian issuer listed on the Hong Kong Stock Exchange.

Additionally, Chinese securities firms have made breakthroughs in cross-border trading channels. In December 2025, China Galaxy Securities’ overseas subsidiary, Galaxy Overseas, successfully completed its first cross-border OTC bond transaction with Bank of China Singapore Branch, marking the first such transaction in Southeast Asia. The RMB OTC bonds under the China-Singapore Bond Market Connect are a cross-border investment channel extending China’s interbank bond market OTC business to Singapore, providing overseas investors with RMB bond trading, clearing, settlement, and related services.

Regarding Dah Sing Bank’s Panda Bond project, China Galaxy Securities stated that it will continue to leverage its global network and cross-border debt capital market expertise to deeply participate in the Belt and Road construction. This is not only a strategic choice for Galaxy Securities but also a common direction for more Chinese securities firms.

For Chinese securities firms accelerating their internationalization, actively responding to national initiatives and supporting high-quality Belt and Road development opens new business expansion opportunities. Southeast Asia is becoming a “promised land” for Chinese securities firms’ overseas expansion, with investment banking as an effective entry point to accelerate overseas business growth.

Liu Xinqi, an analyst at Guotai Haitong Non-bank Financials, noted that most Chinese securities firms’ international businesses are driven by investment returns, with wealth management and investment banking having significant scale. As China’s Belt and Road and corporate globalization strategies advance, more Chinese companies are going abroad, leading to frequent overseas financing, cross-border M&A, and global capital operations—creating opportunities for securities firms’ overseas investment banking.

Tian Lihui mentioned that investment banking bond business is relatively standardized, with measurable risks and easy integration with local financial institutions, helping Chinese securities firms quickly establish business presence and professional reputation in unfamiliar overseas markets. “This ‘debt-first’ strategy paves the way for subsequent equity financing, M&A advisory, asset management, and cross-border capital operations,” he said.

Layout: Liu Junyu

Proofreading: Liao Shengchao