央行、证监会、外汇局联合发布！事关中国债券市场

Core Viewpoint - The People's Bank of China, in collaboration with the China Securities Regulatory Commission and the State Administration of Foreign Exchange, has announced measures to support foreign institutional investors in conducting bond repurchase transactions in the Chinese bond market, enhancing the connectivity between onshore and offshore financial markets and strengthening the international competitiveness of the RMB [1][2]. Group 1: Support for Foreign Investors - The announcement allows all foreign institutional investors, including those entering through direct market access and the "Bond Connect" channel, to engage in bond repurchase activities in the Chinese bond market [1][3]. - This initiative aims to significantly expand the channels for foreign institutional investors to access RMB liquidity, meeting their liquidity management needs and enhancing the attractiveness of RMB assets in global capital markets [2][3]. Group 2: Market Practices and Mechanisms - The mechanisms for bond transfer and other practices introduced in the announcement align with international standards, which is expected to increase the appeal of the Chinese bond market to foreign investors [3][4]. - The types of foreign investors eligible to participate include central banks, international financial organizations, sovereign wealth funds, commercial banks, insurance companies, securities firms, fund management companies, and other asset management institutions [3][4]. Group 3: Transition and Risk Management - A transition period of 12 months is provided for foreign institutional investors already engaged in bond repurchase activities to smoothly adapt to the new practices [4]. - The announcement emphasizes the importance of balancing openness and security in the financial market, with a focus on enhancing transaction, custody, settlement, and exchange processes to ensure effective risk management [4].