Reference News Network, January 21 report: According to the Bloomberg News website, January 20 report, a corner of China's credit market shows that China-Europe relations are becoming closer. The scale of bonds issued through mechanisms established between the Shanghai Clearing House and its Brussels counterpart has reached a record high.

Data compiled by Bloomberg News shows that in 2025, the issuance of bonds known as "Yulan Bonds" increased by 53% year-on-year to $1.2 billion, setting a new record since the introduction of this bond instrument.

The "Yulan Bonds" are named after the white magnolia, the city flower of Shanghai, and were jointly launched by the European Central Bank and the Shanghai Clearing House, with the initial aim of promoting the flow of investment funds and supporting the construction of Shanghai as an international financial center.

The surge in "Yulan Bonds" issuance comes at a time when China is seeking to deepen and broaden its relations with Europe, while U.S. President Trump's policies have brought more uncertainty to the world. China maintains a trade surplus with Europe. The development of this emerging bond instrument also helps promote the internationalization of the Chinese yuan.

Samuel Xie (音), an economist at DBS Bank in Singapore, said: "The continuously expanding scale of Sino-European trade is one of the reasons for the increase in the issuance of 'Yulan Bonds.' He added that compared to the U.S. dollar and euro, the interest rate of the Chinese yuan is relatively low, which further stimulates enterprises' willingness to finance in the Chinese yuan."

Recent market highlights include a 1 billion yuan "Yulan Bond" issued by a company under Fosun International in late September last year, which was the first such bond issued by a private enterprise. At the beginning of the new year, the market continued to show strong momentum, with the Shanghai Free Trade Zone Branch of Industrial Bank successfully issuing an overseas bond using the "Yulan Bond" model, with an issuance size of 3 billion yuan and a term of three years. (Translated by Liu Zongya)

Original source: toutiao.com/article/7597688182976676388/

Statement: This article represents the views of the author himself.