On 16th July 2026, Shanghai Clearing House(SHCH) supported Shanghai Pudong Development Bank in successfully issuing an offshore bond under the Yulan Issuance Model. The issuance amounted to RMB 3 billion, with a tenor of three years and a coupon rate of 1.68%, representing a significant narrowing of 52 basis points compared with the initial price guidance. The issuance attracted participation from over 70 domestic and overseas investors, encompassing a diverse range of entities including foreign institutions in Hong Kong, overseas branches of Chinese institutions and non-bank institutions. It reached investors in mainland China via the Southbound Bond Connect, as well as those in Hong Kong, Macau, Singapore, South Korea, France, the United Kingdom and other countries and regions. The issuance was enthusiasticlly responded by the market participants with the peak subscription multiple exceeding 7.7 times, and set new records for the Yulan Issuance Model in terms of the highest peak subscription multiple, the broadest investor coverage and the most diverse range of investor types. Furthermore, for the first time, offshore bonds issued under the Yulan Issuance Model were listed simultaneously on Hong Kong Stock Exchange and Singapore Exchange, marking a new milestone for the Yulan Issuance Model in terms of international recognition, economies of scale and business innovation.
Under the guidance of the People’s Bank of China, Yulan Issuance Model designates SHCH as the central registrar and custodian. By establishing interconnectivity with international infrastructures such as Euroclear, it provides a secure, efficient and independently controllable channel for financing in the offshore market. Whilst ensuring maximum compatibility with mature custody and settlement arrangements in international markets, the model simultaneously introduces an investor information transparency mechanism to strengthen risk prevention and control and represents a significant measure by SHCH to support the development of an overseas RMB asset pool and to vigorously advance RMB internationalisation. Since the launch of this model, the full range of issuance services—including multi-currency denomination, listing across multiple markets, distribution facilitation, post-issuance management, and tax-exemption treatment—has been continuously refined. Currently, the volume of offshore bonds issued under the Yulan Issuance Model has exceeded the equivalent of 30 billion RMB, with issuers comprehensively covering all types of financial institutions and non-financial enterprises, whilst international investors have gained broad access to the mainstream investors in the Chinese offshore bond market.
Moving forward, SHCH will continue to focus on serving the strategic objectives of RMB internationalisation and the development of Shanghai as an international financial centre. It will deepen and expand cross-border infrastructure interconnectivity, enrich its product and service portfolio, strengthen market coordination and collaboration, and jointly foster a healthy ecosystem for the Yulan Issuance Model.
