境外投资机构积极“试水”债券回购 资产流动性管理“再添利器”

Core Viewpoint - The recent announcement by the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange to support foreign institutional investors in bond repurchase operations is expected to enhance the liquidity management of RMB-denominated bonds and promote the internationalization of the RMB [2][3]. Group 1: Impact on Foreign Institutional Investors - The opening of bond repurchase operations to foreign institutional investors will better meet their liquidity management needs and enhance the attractiveness of RMB bonds internationally [2][3]. - Foreign investors, such as multi-strategy funds, have expressed a strong demand for liquidity management in RMB bonds, which will be facilitated by the new repurchase operations [3]. - The new policy addresses three major pain points previously faced by foreign investors when raising funds through bond sales: instability in investment strategies, increased transaction costs, and heightened investment risks [4][5]. Group 2: Operational Details and Concerns - Foreign institutional investors are particularly interested in the operational details of bond repurchase, including the transferability of underlying bonds and compliance with international practices [6]. - The bond repurchase business will initially allow for buyout-style repurchases, with plans to introduce pledge-style repurchases in the future, addressing differences in operational practices between China and international markets [6][7]. - Concerns regarding the delivery versus payment (DVP) settlement mechanism and the adequacy of repurchase limits to meet liquidity management needs have been raised by foreign investors [7]. Group 3: Regulatory Framework and Future Prospects - The repurchase limit for sovereign institutions and RMB clearing banks is set at 100% of their bond holdings, while other foreign investors will have an initial limit of 80%, with potential adjustments in the future [7]. - The central bank is also promoting the acceptance of domestic bonds as eligible collateral in Hong Kong and global markets, further enhancing the operational space for RMB bonds as liquidity management tools [8].