Shang Hai Zheng Quan Bao·2025-10-12 17:14Core Insights - The launch of cross-border bond repurchase transactions marks a significant step in China's bond market opening, following the introduction of Bond Connect and Swap Connect [1][5] - The first day of trading saw a transaction volume of 5.8 billion yuan, indicating strong initial interest from both domestic and foreign institutions [2][3] Summary by Sections Cross-Border Bond Repurchase Launch - Multiple banks have successfully executed the first batch of cross-border bond repurchase transactions, with a total transaction volume of 5.8 billion yuan on the first day [2][3] - The People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly announced support for foreign institutional investors to engage in bond repurchase transactions in the Chinese bond market [2][4] Benefits for Domestic and Foreign Institutions - The new policy provides foreign investors with liquidity management tools, enhancing their investment experience and potential returns [4][5] - Foreign investors can use their held RMB bonds as collateral for financing, significantly improving asset utilization efficiency [4][5] - For domestic banks, participating in this business broadens liquidity management channels and enhances their influence in international markets [4][5] Future Market Activity - The cross-border bond repurchase business is expected to see steady growth in scale and activity, indicating a deeper integration of onshore and offshore financial markets [5][6] - The new policy aligns with international practices, reducing barriers for foreign institutions to participate in the Chinese market [5][6] - Market participants have positive expectations for the future activity level of the cross-border RMB repurchase market [5][6]