China News Agency, Beijing, November 18 (Reporter Xia Bin) The People's Bank of China announced on the 18th that in order to further expand the two-way opening of the financial market, it and the State Administration of Foreign Exchange of China recently jointly issued the "Foreign Institutional Investors Investing in China's Bond Market Funds". "Management Regulations" (hereinafter referred to as the "Regulations"), launched a number of measures to improve and clarify the capital management requirements for foreign institutional investors investing in China's bond market.
The People's Bank of China stated that the promulgation of the "Regulations" will further facilitate foreign institutional investors' investment in China's bond market and enhance the attractiveness of China's bond market to foreign institutional investors.
The "Regulations" will come into effect on January 1, 2023.
The "Regulations" mainly include five aspects.
The first is to unify and standardize the management rules of capital accounts, capital receipts and payments, remittance, statistical monitoring, etc. involved in foreign institutional investors investing in China's bond market.
The second is to improve the management of spot foreign exchange settlement and sales, allowing foreign institutional investors to handle transactions through third-party financial institutions other than settlement agents.
The third is to optimize foreign exchange risk management policies, further expand foreign exchange hedging channels for foreign institutional investors, and cancel the limit on the number of counterparties in OTC transactions.
The fourth is to optimize the currency matching management of inward and outward remittances, improve the convenience of remittance of investment funds by foreign institutional investors, and encourage long-term investment in China's bond market.
The fifth is to clarify the foreign exchange management requirements of sovereign institutions. Sovereign institutional investors investing through custodians or settlement agents (commercial banks) should register with banks.
Pang Ming, Chief Economist and Director of Research Department of Jones Lang LaSalle Bank, told the reporter of China News Agency that the "Regulations" fully reflect the further acceleration of the high-level opening, two-way opening, and institutional opening of China's bond market and financial market. .
On the premise of effectively preventing and controlling risks, we should continue to deepen institutional reform and innovation, and expand the opening of domestic markets in an orderly manner.
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