基础设施联合支持境外机构投资者开展银行间债券市场债券回购业务

Core Viewpoint - The announcement aims to support foreign institutional investors in conducting bond repurchase transactions in China's interbank bond market, promoting a higher level of openness in the bond market [1][2]. Group 1: Bond Repurchase Business - The bond repurchase business includes two forms: pledged repurchase and buyout repurchase, with foreign institutional investors initially using the buyout repurchase method [2]. - The maximum repurchase period for foreign institutional investors is set at 365 days, with a delivery versus payment (DVP) settlement method and full settlement mechanism [3]. Group 2: Operational Framework - Foreign institutional investors must sign a master agreement for bond repurchase and can conduct transactions through settlement agents or the "Bond Connect" northbound channel [2][3]. - The interbank lending center will provide trading services for foreign institutional investors, who must use the center's system for transactions [3][4]. - The central settlement company and Shanghai clearing house will offer registration, custody, and settlement services for these transactions [2][3]. Group 3: Compliance and Risk Management - Foreign institutional investors must comply with Chinese laws and regulations, and their fund transfers must align with the corresponding investment channel's fund and account management rules [3][4]. - Participants in the bond repurchase transactions must adhere to the macro-prudential management requirements set by the People's Bank of China, with specific limits on cross-border interbank financing [3][4]. - Foreign institutional investors are encouraged to manage leverage effectively, with initial limits on the financing balance based on their holdings [4].