China is developing alternative cross-border financial infrastructure to mitigate risks from US-dominated systems embedded in the world economy. Panda bonds – yuan-denominated debt sold by foreign entities in China’s domestic market – aim to build a deep liquidity pool. The project could be critical in mitigating geopolitical risks and reducing reliance on Swift for China and other participants. The goal is to close the gap between domestic and international rating systems to ease foreign investor uncertainty. As a low-cost fundraising alternative to US dollar-denominated debt, panda bonds are increasingly attractive to foreign investors.