China's onshore ESG bond issuance dropped 21% year on year in the first quarter, a reversal from a 70% rise in 2025, Sustainable Fitch said in a recent release.
Offshore issuance continued to be muted, with sovereign activity driving early second-quarter trends, the ESG data provider said.
ESG-labeled panda bond issuance doubled in the first quarter, due to competitive renminbi funding rates and enhanced panda bond systems, Sustainable Fitch said.
However, ESG-labeled bonds still have a small share in total panda bond issuance, driven by sovereign and supranational issuers and with limited corporate participation, the data provider said.