Asia’s multi-currency GSS market continued to expand in 2025, from negligible levels before 2020 into a structurally large segment by 2023–2025. Issuance remained concentrated in a limited number of currencies and issuer types. CNY accounted for the largest share of regional labelled supply (around 43%), while JPY issuance moderated following elevated GX-related activity in 2024, and USD issuance rebounded alongside improved funding conditions.
USD GSS issuance in Asia, across both bond and loan markets, developed unevenly. While total USD issuance recovered to multi-year highs in 2025, labelled bonds accounted for only around 4–9% of USD bond supply, indicating low and uneven penetration. GSS loans maintained a higher relative share, at around 9–27%, reflecting their use in funding ongoing capital expenditure. USD credit performance in 2025 varied across Emerging Asia, Australia and Japan, with outcomes differentiated by sector and credit quality. Bank capital outperformed across regions, while high-yield, transition-exposed issuers in EM Asia, particularly in Materials and Real Estate, faced heightened refinancing pressure. Performance differences between labelled and non-labelled bonds remained mixed and sector-specific, informing key transition credit themes and considerations for 2026.
