DBS Wins Key Licence to Underwrite Corporate Bonds in China’s Interbank Market

DBS Group, Singapore’s largest bank by assets and Southeast Asia’s biggest financial institution, announced that its China subsidiary has received a principal underwriting licence for non-financial corporate bonds in China’s interbank bond market. The approval was granted by the National Association of Financial Market Institutional Investors (NAFMII), a key regulatory body overseeing the country’s debt market.

The new licence allows DBS China to act as a lead underwriter for onshore corporate bond issuances. In this role, the bank can coordinate syndicates, structure deals, and manage the issuance process for corporate bonds sold within China’s interbank market. The approval significantly expands DBS’s presence in China’s fixed-income market and strengthens its role in facilitating cross-border capital flows.

DBS highlighted that it has already been a major participant in the panda bond market. Panda bonds are yuan-denominated bonds issued in China’s domestic market by foreign companies or institutions. In 2025, DBS China ranked among the most active foreign banks in this segment, capturing about 38% market share after participating in bond issuances totaling 65.8 billion yuan (approximately $9.54 billion).

The bank also emphasized its unique position among Singapore-based financial institutions. DBS said it is currently the first and only Singapore-headquartered bank authorized to lead underwrite all corporate bonds issued in China’s interbank bond market. This milestone further strengthens DBS’s reputation as a key international player in China’s rapidly expanding bond sector.

According to DBS, the panda bond market has grown rapidly in recent years. Issuance in China’s interbank bond market increased at a compound annual growth rate of 26% over the past five years. Total panda bond issuance rose from 54.5 billion yuan in 2020 to 173.3 billion yuan in 2025, based on data from Wind Information.

In addition to its underwriting licence, DBS also achieved another milestone in 2025 when it became the first Singapore bank appointed as a renminbi clearing bank. The designation allows DBS to facilitate yuan settlements and strengthen financial connectivity between China and global markets, further reinforcing its strategic role in Asian capital markets.