Shanghai is considering subsidies of up to 2.2 million yuan ($327,000) per issue to attract offshore bond issuers and build the free trade zone’s market into a global funding hub. The proposed rebates would cover advisory, legal, banking and other fees, apply through the end of 2028 to bonds exceeding 200 million yuan with maturities of at least one year, and offer additional support for green bonds and issues using innovations such as the digital yuan. The market, opened in 2016, has attracted little foreign participation and remains dominated by Chinese borrowers, including local government financing vehicles (LGFVs). The measures would also allow onshore banks to buy FTZ bonds under quotas and a 50% cap on onshore money in any single bond. Supporters say lower Chinese yields could make the market more competitive, but weak liquidity, high issuance costs and competition from Singapore and Hong Kong remain obstacles.