DBS Broadens China Market Dominance: Secures Principal Bond Underwriting License

DBS, a Singaporean financial institution, is expanding its operations in mainland China by acquiring a bond underwriting license. With this license, the bank’s China division is now permitted to function as a principal underwriter for non-financial corporate bonds in the mainland’s interbank bond market. This authorization has been granted by China’s National Association of Financial Market Institutional Investors (NAFMII). Consequently, DBS can now manage all onshore corporate bond deals, which involves coordinating syndicates.

The Role of DBS in China’s Bond Market

DBS is a substantial foreign participant in the issuance of panda bonds. These are yuan-denominated bonds that are sold onshore by issuers who are not Chinese. As of the close of the previous year, DBS held a 38 percent market share in panda bonds.

In 2025, the issuance of panda bonds in China’s interbank market amounted to 173.3 billion yuan, or $25.1 billion. This represents a compound annual growth rate of 26 percent over the past five years, a clear sign of the bond market’s rapid expansion.

Questions & Answers

What is the recent development for DBS in mainland China?
DBS’ China unit has received a principal underwriting license for non-financial corporate bonds in mainland China’s interbank bond market from the National Association of Financial Market Institutional Investors (NAFMII).

What does this license allow DBS to do?
This license allows DBS to handle all onshore corporate bond deals, including the coordination of syndicates.

What is DBS’ current standing in the issuance of panda bonds?
DBS is a significant foreign participant in the issuance of panda bonds with a market share of 38 percent as of the end of last year.