Core Insights - The People's Bank of China reported that in August, a total of 74,281.4 billion yuan in various bonds were issued [1] Bond Market Issuance - Government bonds amounted to 13,277.6 billion yuan [1] - Local government bonds issued totaled 9,776.4 billion yuan [1] - Financial bonds reached 11,550.3 billion yuan [1] - Corporate credit bonds issued were 12,391.4 billion yuan [1] - Credit asset-backed securities issued were 212.2 billion yuan [1] - Interbank certificates of deposit issued totaled 26,956.5 billion yuan [1] Foreign Participation - As of the end of August, the custody balance of foreign institutions in the Chinese bond market was 39,000 billion yuan, accounting for 2% of the total custody balance [1] - The custody balance of foreign institutions in the interbank bond market was 38,000 billion yuan [1]

Core Insights - The international influence and attractiveness of China's bond market have significantly increased, with 1,170 foreign institutions from over 80 countries holding approximately 4 trillion RMB in bonds as of the end of August [1] Group 1: Market Activity - In the first eight months of this year, the trading volume of bond spot transactions by foreign institutional investors reached about 11.8 trillion RMB, with the "Bond Connect" northbound trading volume accounting for approximately 7.2 trillion RMB [1] - The "Swap Connect" business has also seen continuous growth, with over 15,000 transactions and a cumulative nominal principal amount of about 8.2 trillion RMB, representing more than a ninefold increase since its launch [1] Group 2: Market Size and Growth - As of the end of August, the total balance of China's bond market reached 192 trillion RMB, making it the second largest in the world [1] - The bond issuance scale in the first eight months of this year exceeded 59 trillion RMB, reflecting a year-on-year growth of 14%, with net bond financing amounting to 11.8 trillion RMB, establishing it as the second largest channel for financing the real economy [1]

Core Viewpoint - China International Capital Corporation (CICC) has successfully completed its first cross-border repurchase transaction with foreign institutions as a market maker for the "Bond Connect" northbound trading scheme, responding to recent regulatory announcements aimed at enhancing foreign investment in China's bond market [1] Group 1: Market Development - The Chinese bond market has seen significant progress in opening up to foreign investors, with an increasing number of foreign institutions and a growing scale of bond holdings [1] - The recent policy changes are designed to meet the liquidity management needs of foreign institutional investors, thereby enhancing the attractiveness of RMB-denominated bonds [1] Group 2: Regulatory Support - The initiative aligns with the joint announcement made by the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange on September 26, which supports foreign investors in engaging in bond repurchase activities in China [1] - The optimization of the Qualified Foreign Institutional Investor (QFII) system is part of the broader strategy to strengthen Hong Kong's position as an international financial center [1]

Group 1 - The announcement aims to promote the interconnection of onshore and offshore financial markets and enhance the high-level opening of China's bond market [1] - As of August 2025, 1,170 foreign institutions from 80 countries and regions have entered the Chinese bond market, holding approximately 4 trillion RMB in bonds [1] - The new regulation allows all types of foreign institutional investors to participate in bond repurchase transactions in the interbank bond market, including central banks, sovereign wealth funds, commercial banks, insurance companies, and various asset management institutions [1] Group 2 - The announcement introduces a shift to international practices for bond repurchase transactions, allowing for the transfer of pledged bonds between parties, which enhances market liquidity [2] - A 12-month transition period is provided for existing foreign institutions to continue using the original model before fully adopting the new practices [2] - Regulatory measures will ensure a balance between openness and security, implementing closed-loop management for transactions, custody, settlement, and foreign exchange [2]

Core Viewpoint - The People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly announced measures to further support foreign institutional investors in conducting bond repurchase transactions in the Chinese bond market, enhancing the attractiveness of RMB-denominated bonds and optimizing the Qualified Foreign Institutional Investor system [1][4]. Group 1: Bond Market Development - The bond repurchase is a widely used liquidity management tool among financial institutions, facilitating short-term financing [3]. - As of August 2025, foreign institutions from over 80 countries held approximately 4 trillion RMB in the Chinese bond market, with a trading volume of about 11.8 trillion RMB in the first eight months of 2025 [3]. - The bond repurchase transaction volume reached 148.8 trillion RMB from January to August 2025, marking a year-on-year increase of 5.2% [3]. Group 2: Support for Foreign Investors - The announcement allows all types of foreign institutional investors, including central banks, sovereign wealth funds, and various financial institutions, to participate in bond repurchase transactions in the interbank bond market [6]. - The measures aim to expand channels for foreign investors to access RMB liquidity and enhance the global appeal of RMB assets [4][6]. Group 3: Regulatory Framework - The announcement emphasizes a balanced approach to openness and security in the financial market, with a focus on comprehensive monitoring and regulation of bond repurchase activities [7]. - The initial trading mechanism for foreign investors will follow existing practices, with a transition period of 12 months for those already engaged in bond repurchase transactions [6][7].

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 conducting bond repurchase transactions in the Chinese bond market reflects a significant boost in confidence for global investors in RMB-denominated bond assets [1][2]. Group 1: Policy Impact - The new policy allows foreign institutional investors, including central banks, international financial organizations, sovereign wealth funds, and various financial institutions, to engage in bond repurchase transactions in the Chinese bond market [1]. - The bond repurchase market in China saw a cumulative transaction volume of 14.88 trillion RMB from January to August 2025, marking a year-on-year increase of 5.2% [1]. Group 2: Market Development - As of August 2025, 1,170 foreign institutions from 80 countries and regions have entered the Chinese bond market, holding a total of approximately 4 trillion RMB in bonds [2]. - The international influence and attractiveness of China's bond market have significantly increased, with Chinese bonds being included in major international bond indices such as Bloomberg Barclays, JPMorgan, and FTSE Russell [2]. - Currently, Chinese bonds account for the second-largest share in the FTSE Russell Global Government Bond Index and the third-largest share in the Bloomberg Barclays Global Aggregate Index, indicating strong global investor confidence in RMB-denominated bonds [2].

Core Viewpoint - The People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange have announced new policies to support foreign institutional investors in conducting bond repurchase transactions in the Chinese bond market [1][4]. Group 1: Policy Implications - The new policy allows foreign institutional investors, including central banks, international financial organizations, sovereign wealth funds, and various financial institutions registered abroad, to engage in bond repurchase transactions [4]. - This initiative provides a flexible and efficient liquidity management channel and risk management tool for foreign institutional investors, aligning with international practices [6]. Group 2: Market Impact - As of August 2025, the cumulative bond repurchase transaction volume in China reached 14.88 trillion yuan, reflecting a year-on-year increase of 5.2% [4]. - The international influence and attractiveness of the Chinese bond market have significantly improved, with 1,170 foreign institutions from 80 countries and regions participating, holding a total of approximately 4 trillion yuan in bonds [9]. Group 3: Global Integration - Chinese bonds have been included in major international bond indices, such as Bloomberg Barclays, JPMorgan, and FTSE Russell, with their representation in the FTSE Russell Global Government Bond Index rising to the second position globally and the Bloomberg Barclays Global Aggregate Index to the third position [12].

中新网9月26日电据"中国人民银行"微信公众号消息，2025年9月26日，中国人民银行、中国证监会、国 家外汇局联合发布公告，支持可在中国债券市场开展债券现券交易的境外机构投资者开展债券回购业 务。 延伸阅读： 近年来，中国债券市场对外开放取得积极成效，境外机构投资者投资中国债券市场的数量和持债规模扩 大，通过债券回购业务开展流动性管理的需求不断增加。截至2025年8月末，共有来自80个国家和地区 的1170家境外机构进入中国债券市场，持债总量约4万亿元人民币。中国人民银行有序推动银行间债券 市场债券回购业务对外开放，自2015年起，支持境外主权类机构、境外人民币业务清算行和境外参加行 在银行间市场开展债券回购业务；2025年，与香港金管局共同推出以"债券通"北向通债券为标的的离岸 回购业务。 中国人民银行、中国证监会、国家外汇局进一步支持各类境外机构投资者开展债券回购业务，不仅有利 于满足市场需求，进一步增强人民币债券资产吸引力，也有利于优化合格境外投资者制度，巩固提升香 港国际金融中心地位，助力在岸离岸人民币市场协同发展。业务模式上，中国人民银行深入总结境内外 回购市场实践，加强银行间市场债券回购机制和国 ...

Core Viewpoint - 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, enhancing liquidity management and promoting high-level opening of the market [1] Group 1: Announcement Details - The announcement allows all foreign institutional investors in the interbank bond market to participate in bond repurchase transactions, including those entering through direct market access and the "Bond Connect" channel [1] - Bond repurchase is a widely used liquidity management tool internationally, facilitating short-term financing among financial institutions using bonds as collateral [1] Group 2: Market Implications - Supporting foreign institutional investors in bond repurchase activities is expected to meet market demand and enhance the attractiveness of RMB-denominated bond assets [1] - This initiative is also seen as beneficial for consolidating and enhancing Hong Kong's status as an international financial center, aiding the coordinated development of onshore and offshore RMB markets [1]

下一步，中国人民银行、中国证监会、国家外汇管理局将会同有关各方持续完善各项机制安排，稳步推 进中国债券市场高水平制度型开放。 本报记者 刘 琪 9月26日，中国人民银行、中国证监会、国家外汇管理局联合发布关于进一步支持境外机构投资者在中 国债券市场开展债券回购业务的公告（以下简称《公告》）。 中国人民银行、中国证监会、国家外汇管理局进一步支持各类境外机构投资者开展债券回购业务，不仅 有利于满足市场需求，进一步增强人民币债券资产吸引力，也有利于优化合格境外投资者制度，巩固提 升香港国际金融中心地位，助力在岸离岸人民币市场协同发展。业务模式上，中国人民银行深入总结境 内外回购市场实践，加强银行间市场债券回购机制和国际市场通行做法衔接，实现标的债券过户和可使 用，为境外机构投资者开展债券回购业务提供更大便利，也有利于促进优化境内债券回购业务机制。 目前，我国质押式债券回购与国际市场债券回购在操作上存在差异，未将质押式回购标的债券从正回购 方过户至逆回购方，而是冻结在正回购方。 "国际市场主流回购模式均采取标的债券过户和可使用的做法，类似于银行间债券市场的买断式回 购。"前述负责人表示，《公告》起草过程中，境外机构投 ...