For another major participant in the panda bond market, overseas private institutions, issuing RMB bonds depends more on the purpose of issuing bonds. According to the past management methods, the funds raised by panda bonds cannot be converted into foreign exchange and transferred abroad, so panda bonds will not affect the outflow and inflow of foreign exchange assets and funds. Even if this management mode is open, from the standpoint of risk management, the most likely overseas institutions to issue RMB bonds are still overseas enterprises with large cash flow income in China (such as foreign retail enterprises or enterprises undertaking large-scale engineering projects in China), large international private equity funds promoting leveraged buyouts in China, or foreign financial institutions wishing to rapidly expand their business in China. There is little chance for them to buy dollars with the RMB obtained from issuing bonds, thus reducing the function of the panda bond market to alleviate the excessive pressure on foreign exchange reserves.

In addition, we can also use data and neighboring countries-Japan, where the local currency bond market of overseas institutions is very mature, as evidence. Interestingly, in order to alleviate the pressure on foreign exchange reserves, Japan also developed the "samurai bond" market. Japan has promoted the samurai bond market for more than 17 years, and the total annual bond issuance has increased from 754 1 billion yen in1year to 2.2 trillion yen (193 billion US dollars) in 2007, which is very limited compared with Japan's foreign exchange reserves. At present, China has the largest foreign exchange reserves in the world, nearly 2 trillion US dollars. In 2008, the increased US dollar reserves reached 4 178 billion US dollars. If we refer to the development speed of Japanese samurai bonds, it is too slow to solve the problem of China's excess foreign exchange reserves with panda bonds. Considering the global economic downturn in the next few years, the number of overseas private institutions participating in panda bonds will not be too large in the short term.

The fixed income (bond) market in Asian markets except Japan is still in the early stage of development; Although Hong Kong has made great efforts in the past few years, the development of its bond market has not achieved remarkable results. This is closely related to the development of regional market enterprises, the quantity and quality of institutional investors, the competitiveness of commercial banks, the structure of financial markets and the development of other relevant participants.