Asia-Pacific Bond Markets Surge as Foreign Borrowers Seek Diversification
Foreign borrowers are increasingly turning to Asia-Pacific bond markets as they seek to diversify their funding sources amidst rising uncertainty and record borrowing. In 2026, foreign issuers have sold bonds denominated in Australian dollars and China's onshore and offshore renminbi for the first time, with Germany's Commerzbank, French utility Engie, Persil-owner Henkel, Singapore Airlines, and the Portuguese government among them.
The 'kangaroo' bond sales from foreign issuers in Australian dollars have reached a record high of around A$60 billion so far this year, up roughly 40% from 2025. Hong Kong dollar issuance is also at an all-time high.
Chinese onshore 'panda' and offshore 'dim sum' renminbi bond sales have reached record highs of around 160 billion yuan and 350 billion yuan, respectively, in the first half of the year, rising more than 60% compared with this time last year. Half of these sales came from international borrowers.
'We've reached a tipping point where these markets have tipped over into being significantly more meaningful,' said Carla Goudge, head of debt syndicate for Asia-Pacific at HSBC. 'It's an option that simply wasn't available in such meaningful size on a regular basis a few years ago.'