China News Service, Beijing, September 2 (Reporter Xia Bin) On the 2nd, the Central Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange announced the jointly drafted announcement on matters related to foreign institutional investors investing in the Chinese bond market (draft for comments) This move is to further strengthen the systemic, integrated and synergistic nature of China’s bond market opening to the outside world, and facilitate the allocation of RMB bond assets by foreign institutional investors.
There are 16 articles in the announcement, mainly in five aspects, namely, requirements for foreign institutions to enter the market, investment methods and investment scope, custody and settlement arrangements, data submission and transaction reporting database requirements, and specific implementation rules.
According to the official, the drafting ideas of the announcement include adhering to the principle of rule of law, unified access management, unified capital management, improvement of operational arrangements in line with international standards, and deepening of cross-departmental regulatory cooperation.
The official specifically mentioned that the announcement adjusted the application of foreign institutions from products to managers and custodians, and in accordance with the basic idea that legal entities are the main body of market activities and the subject of supervision, the responsibilities and obligations of all parties are consolidated and related operations are facilitated.
At the same time, the announcement follows the principle of "one Chinese bond market with one set of standards and one set of rules", unified access standards, optimized market entry procedures, and encouraged foreign institutions to invest in the Chinese bond market as medium and long-term investors.
Foreign institutional investors who have entered the inter-bank bond market can invest in the exchange bond market directly or through interconnection.
The announcement also simplifies the current settlement agency model entry process, and the Shanghai headquarters no longer requires the submission of settlement agency agreements.
Foreign institutions are allowed to invest in the market in accordance with the "global custodian bank + local custodian bank" model, and promote the implementation of the nominal bond holding and multi-level custody system.
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