China's interbank market regulator: to strengthen information disclosure of debt financing instrument issuance

China's interbank market regulator: to strengthen information disclosure of debt financing instrument issuance

In a significant move to enhance transparency and investor confidence, the National Association of Financial Market Institutional Investors (NAFMII) has announced plans to strengthen information disclosure requirements for debt financing instrument issuance within China’s interbank market. This initiative is part of ongoing efforts to foster the sustainable, high-quality growth of China’s financial markets.

On July 28, 2025, Morgan Stanley became the first U.S.-headquartered company to issue panda bonds in China’s interbank market. The issuance of 2 billion yuan in five-year bonds, carrying a competitive coupon rate of 1.98 per cent, underscores the growing appeal of China’s bond market and the increasing participation of international entities [1]. This issuance not only diversifies the pool of panda bond issuers but also reinforces the high-quality development of China’s bond market.

In parallel, China Resources Land, a leading real estate developer, has entered into a term loan facility agreement with various banks and financial institutions, totaling 5.85 billion yuan. This facility, announced on June 18, 2025, highlights the company’s robust financial health and its ability to secure significant financing from the interbank market [2].

The regulator’s move to enhance information disclosure is aimed at providing investors with more comprehensive and timely information about debt financing instruments. This includes detailed disclosures on the issuer’s financial health, the terms of the bonds, and the market conditions under which they are issued. The initiative aligns with China’s commitment to institutional opening-up and the development of its financial markets.

As of 2025, bond issuances within China’s interbank market have reached an impressive total of 111.2 billion yuan, with foreign governments, multilateral institutions, and multinational corporations accounting for half of this volume. This reflects a 27-percentage-point increase from 2024, indicating the growing interest in China’s bond market [1].

The new disclosure requirements are expected to improve the efficiency and effectiveness of the interbank market, making it more attractive to both domestic and international investors. By providing better information, the regulator aims to foster a more transparent and liquid market, ultimately contributing to the sustainable growth of China’s financial sector.

References:
[1] https://www.dimsumdaily.hk/morgan-stanley-issues-landmark-panda-bonds-in-chinas-interbank-market/
[2] https://www.marketscreener.com/news/china-resources-land-announces-term-loan-facility-of-cny-2-billion-ce7c5fd9d18bf724