SINGAPORE, March 4 - DBS Group, the region’s largest bank by assets, announced that its China unit has been awarded a principal underwriting licence to operate in China’s interbank bond market for non-financial corporate bonds. The licence was issued by the National Association of Financial Market Institutional Investors (NAFMII), the bank said in a statement.
The NAFMII authorisation permits DBS China to act as lead manager on all onshore corporate bond transactions, including the organisation and coordination of underwriting syndicates. DBS described the approval as enabling full lead-underwriting capabilities for corporate bonds issued in the onshore market.
DBS also reported that in 2025 its China arm was one of the most active foreign banks in the panda bond segment, taking a 38% market share after participating in 65.8 billion yuan of issuance. Panda bonds are yuan-denominated securities issued in China’s domestic market by non-Chinese issuers.
DBS cited data from Wind Information to note a rapid expansion in panda bond activity within the interbank market over the past five years. According to the figures provided, annual panda bond issuance in the interbank market grew at a 26% compound annual growth rate from 54.5 billion yuan in 2020 to 173.3 billion yuan in 2025.
In addition to the underwriting licence, DBS said it was the first Singapore-headquartered bank licensed to lead-underwrite all corporate bonds in China’s interbank bond market, and that it had become the first Singapore bank appointed as a renminbi clearing bank in 2025. The statement also included a currency reference of $1 = 6.8996 Chinese yuan renminbi.
What this means
The NAFMII licence formally expands DBS China’s remit in onshore bond markets by allowing it to take principal underwriting roles and coordinate syndicates for non-financial corporate issuers. The bank’s reported market share and participation volumes in panda bond issuance for 2025 underscore its active participation in that segment.
Context and metrics cited by the bank
- DBS China participated in 65.8 billion yuan of panda bond issuance in 2025, representing a 38% market share among foreign banks in that segment, according to DBS.
- Panda bond issuance in China’s interbank market increased from 54.5 billion yuan in 2020 to 173.3 billion yuan in 2025, a 26% compound annual growth rate, per Wind Information data cited by DBS.
- DBS said it became the first Singapore bank appointed as a renminbi clearing bank in 2025.
Implications for markets
The licence formally permits DBS China to take a central, lead role in arranging and underwriting onshore corporate bond deals for non-financial issuers. That positions the bank to play a more prominent role in the distribution and structuring of panda bond offerings in the China interbank market.