时报观察｜债券回购质押券“解冻”有利于提高债市深广度

Core Viewpoint - The article discusses the need for enhancing the liquidity and diversity of participants in China's bond market, particularly in light of the proposed changes to the regulations regarding the freezing of pledged bonds in repurchase agreements [1][2]. Group 1: Market Dynamics - China's bond market, being the second largest globally, requires continuous improvement in trading activity and participant diversity [1]. - The People's Bank of China has proposed to eliminate the requirement to freeze pledged bonds in repurchase agreements, which has garnered significant attention in the bond market [1]. - The current practice of freezing pledged bonds limits their circulation in the secondary market, thereby reducing overall market liquidity and trading activity [1]. Group 2: Impact of Proposed Changes - The monthly transaction volume of pledged repurchase agreements in the interbank bond market has been around 100 trillion yuan this year, and unfreezing a large number of short-term interest rate bonds will increase supply and enhance market depth [2]. - Increased market depth is expected to reduce volatility and facilitate better liability management for financial institutions, as well as smoother monetary policy operations by the central bank [2]. - The proposed changes align domestic practices with international standards, as overseas markets primarily use buyout-style repurchase agreements, which could attract more foreign investment into the domestic bond market [2][3]. Group 3: Broader Implications - The removal of the freezing requirement for pledged bonds may have significant ripple effects, including the unification of trading rules between onshore and offshore RMB bond markets [3]. - This unification could promote a virtuous cycle between the two markets and enhance the integration of the RMB bond market with international standards [3].