Panda bonds, which are renminbi-denominated debt issued by overseas entities in China's domestic market, are set to hit a record high this year, driven by institutional strengths and growing global interest in the renminbi, according to a report from the People's Bank of China. In the first five months, issuance reached 136.5 billion yuan, nearly double the same period last year. First-quarter trading volume this year surged 93% year-on-year. The issuer base now includes sovereign entities, international development banks and multinational corporations. Medium- and long-term panda bonds accounted for 61% of issuance in 2025, up 17 percentage points from 2021. Qu Qiang, Fellow of the Belt and Road Research Center at Minzu University of China, told CGTN that more flexible use of the panda bonds, as well as policy uncertainties from the United States, have helped improve the popularity of the renminbi-denominated bonds.