Core Viewpoint - The recent announcement by the central bank, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange allows foreign institutional investors to fully participate in the bond repurchase market, marking a significant policy shift in China's financial landscape [1][8]. Group 1: Impact on Foreign Investors - The new policy effectively provides foreign investors with a "liquidity button" for their RMB-denominated bonds, enhancing their ability to manage cash flow [2]. - Historically, foreign investors faced challenges during market volatility, often forced to sell Chinese government bonds to meet margin calls, disrupting their investment strategies [3]. - The inability to efficiently manage liquidity led to increased trading costs and amplified investment risks, with estimates suggesting that transaction costs could consume 30%-50% of investment returns [4]. Group 2: Historical Context and Policy Evolution - The bond repurchase business for foreign institutions has been a decade-long journey, with initial participation limited to sovereign institutions and certain clearing entities, excluding major investment players [8]. - The recent policy change opens the door for a broader range of foreign investment institutions, allowing them to engage in repurchase agreements, which are essential for liquidity management [8]. Group 3: Operational Differences and Future Prospects - The new repurchase framework introduces a buyout-style repurchase model, aligning more closely with international practices, while the existing pledge-style repurchase remains in place for the time being [11]. - The policy is expected to enhance the attractiveness of Chinese bonds, with foreign institutions likely to increase their holdings significantly, as evidenced by a net increase of over 300 billion RMB in the first eight months of the year [13]. - The central bank's efforts to position Chinese bonds as widely accepted collateral in global markets could further boost their appeal and liquidity [13].

近年来，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。 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。 债券回购是金融机构之间以债券为标的的短期资金融通行为，也是国际上应用最广泛的流动性管理 工具之一。记者了解到，公告发布后，银行间债券市场的境外机构投资者均可参与债券回购业务，包括 通过直接入市和"债券通"渠道入市的全部境外机构投资者。境外机构投资者开展债券回购业务，将采取 国际市场通行做法，实现标的债券过户和可使用。 人民日报海外版北京9月28日电（记者徐佩玉）中国人民银行、中国证监会、国家外汇局近日联合 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。 ...

三部门发文 债券回购是金融机构之间以债券为标的的短期资金融通行为，也是国际上应用最广泛的流动性管理工具 之一。记者了解到，公告发布后，银行间债券市场的境外机构投资者均可参与债券回购业务，包括通过 直接入市和"债券通"渠道入市的全部境外机构投资者。境外机构投资者开展债券回购业务，将采取国际 市场通行做法，实现标的债券过户和可使用。 近年来，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。 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。 [ 责编：金昱希 ] 支持境外机构投资者开展债券回购业务 本报北京9月28日电（记者徐佩玉）中国人民银行、中国证监会、国家外汇局近日联合发布公告，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。 ...

Macro Highlights - The People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly issued an announcement to support foreign institutional investors in conducting bond repurchase transactions in the Chinese bond market, enhancing liquidity management and promoting connectivity between onshore and offshore financial markets [1] Company News - New Dazheng (002968) disclosed a major asset restructuring plan on September 28, proposing to acquire 75.15% of Jiaxin Liheng's equity through a combination of issuing shares and cash payments, aiming to expand its business reach [4] - *ST Tianmao announced that its stock will be delisted on September 30, 2025 [5] - Duori Pharmaceutical is planning a change in control and will suspend trading from the 29th [6] - Zhonghuan Environmental Protection is also planning a change in control and will suspend trading from the 29th [7] - Yidao Information is planning to acquire Langguo Technology and become its controlling shareholder, suspending trading from the 29th [8] - Zhiguang Electric is planning to acquire minority stakes in its subsidiary Zhiguang Energy Storage, suspending trading from the 29th [9] - Guanzhong Ecology's controlling shareholder intends to change to Deep Blue Finance Whale, with trading resuming on the 29th; the company plans to acquire 51% of Hangzhou Actuary [10]

Core Viewpoint - The article discusses the practice of cash tender offers in China's bond market, highlighting its role as an important tool for issuers to actively manage their debt and suggesting policy recommendations to promote its development [1][5]. Group 1: Basic Concept and Function of Cash Tender Offers - Cash tender offers involve issuers making an offer to all bondholders to repurchase some or all of their outstanding bonds for cash, which is a proactive measure during the bond's life [1]. - This method is characterized by high flexibility and strong market orientation, serving to optimize debt structure, reduce financing costs, enhance market confidence, stabilize bond prices, and alleviate liquidity pressure [1]. Group 2: Current Development Status and Institutional Foundation - In overseas markets, bond repurchases by issuers are common and include various methods such as open market repurchases, tender offers, and bond exchanges [2]. - China has gradually established a framework for cash tender offers since 2019, with regulatory guidance from the Shanghai Stock Exchange and the National Association of Financial Market Institutional Investors [2]. - The scale of cash tender offers in the interbank market has been increasing year by year, indicating a growing market acceptance [2]. Group 3: Market Situation from Research Findings - Research indicates that issuers have insufficient awareness and willingness to engage in cash tender offers, particularly among industrial enterprises [3]. - Investor participation is significantly influenced by price, with a general expectation for the offer price to exceed market price, making the premium level a key factor in their willingness to participate [3]. - The existing information disclosure system does not fully meet investors' needs for credit risk assessment, affecting decision-making efficiency [3]. - There are cognitive differences between issuers and investors regarding the planned repurchase ratio and pricing mechanisms [3]. Group 4: Policy Recommendations - To promote the healthy development of cash tender offers, it is recommended to enhance business promotion and training through case studies and training sessions [4]. - The role of professional institutions should be strengthened to ensure fair and transparent transactions through effective management and communication [4]. - It is suggested that issuers communicate adequately with investors before initiating offers to set reasonable repurchase ratios and prices [4]. - Increasing penalties for violations and ensuring strict enforcement against market manipulation and investor harm are recommended to maintain market order [4]. - Improving the quality of information disclosure and establishing standardized templates for disclosures can enhance the authenticity and comparability of information [4]. Group 5: Conclusion - Cash tender offers represent a significant opportunity for issuers to manage their debt actively, with considerable potential for development in China's bond market [5]. - Through institutional improvements, market guidance, and strengthened regulation, there is potential to enhance market efficiency, optimize debt structures, and promote high-quality development in China's bond market [5].

美国财政部：将提高10年期至20年期、20年期至30年期债券的回购频率，从目前的每季度两次提高至每 季度四次。 ...

1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The "Decision of the People's Bank of China on Amending and Repealing Certain Rules (Draft for Comment)" may lead to the transformation of bond repurchase in the inter - bank market from pledged repurchase to outright repurchase in the future, with outright repurchase potentially becoming the core of China's bond repurchase. Although there are currently few outright repurchase transactions, it has supporting facilities, experience, and is conducive to international integration [1][11]. - In the short term, the impact on the bond market may be neutral. Unfreezing pledged bonds can increase asset supply, enhance liquidity, and provide a short - selling channel for investors, but risk prevention is also necessary [3][18]. 3. Summary by Relevant Catalog 3.1 Understanding "Canceling the Freeze on Pledged Bonds for Bond Repurchase" - On July 18, 2025, the central bank proposed canceling the freeze on pledged bonds for bond repurchase, which is a modification of Article 31 of the "Administrative Measures for Bond Registration, Custody, and Settlement in the Inter - bank Bond Market" [8]. - As of the end of June 2025, the balance of pledged repurchase in the inter - bank bond market was 24.30 trillion yuan, while the balance of outright repurchase was 203.4 billion yuan, less than 1% of the pledged repurchase balance. Pledged repurchase only has a financing function, and the ownership of pledged bonds does not transfer, reducing their liquidity and being unfavorable to the rights and interests of the fund lender in case of default or rapid interest rate increases. Outright repurchase has both financing and short - selling functions, and the fund lender has greater operational flexibility [8][11]. 3.2 Outright Repurchase Has Supporting Facilities and Experience - In terms of facilities, the term of outright repurchase has been extended to 365 days, the accounting treatment has been clarified, and the function of quoting and trading multiple bonds in a single outright repurchase has been launched [2][12]. - In terms of experience, the central bank launched an open - market outright reverse repurchase operation tool in October 2024, and by June 2025, the balance reached 4.60 trillion yuan, replacing part of the MLF [2][12]. - Switching to outright repurchase is conducive to international integration. The main forms of international bond market repurchase are classic repurchase and buy/sell - back transactions, where bond ownership transfers. China's offshore repurchase business has started to revitalize pledged bonds [2][16]. 3.3 Future Outlook - In the short term, the impact on the bond market may be neutral. Although the central bank's statement has raised market expectations for bond trading, currently, the net sale of national bonds does not match the central bank's policy tone [3][18]. - Canceling the freeze on pledged bonds can increase asset supply, enhance liquidity, relieve institutional liability - side pressure, and provide a short - selling channel for investors, but it is necessary to prevent a sharp increase in the leverage ratio of the bond market [3][18]. - If the switch from pledged repurchase to outright repurchase occurs, the scale of pledged bonds involved is estimated to be 14.76 trillion yuan based on the central bank's balance sheet and 8.22 trillion yuan based on the monthly trading volume of pledged repurchase in June 2025, assuming a 90% pledge ratio [3][19].

Report Summary 1. Report Industry Investment Rating No industry investment rating information is provided in the content. 2. Core Viewpoints - The central bank's move to cancel the freeze on pledged bonds is mainly to enhance market liquidity, and domestic bond repurchase may shift from pledge - style to buy - sell - back style similar to the central bank's. The change from frozen pledged bonds to transferable and tradable ones can significantly boost bond liquidity, especially considering that the average daily trading volume of pledged repurchase in China in 2025 is 5 - 6 trillion yuan [6]. - Canceling the freeze on pledged bonds can facilitate the central bank's treasury bond trading operations and promote the high - level opening - up of the bond market [7]. - The pattern of the current bond yield increase may shift from the previous "central bank tightens funds → bond yield increases" to "stock market rises → bond yield increases". If the economy does not decline significantly in the second half of the year, funds in the bond market may gradually flow out [10]. 3. Summary by Relevant Catalogs Event Background - On July 18, 2025, the People's Bank of China issued a notice on soliciting public opinions on the "Decision of the People's Bank of China on Amending Some Regulations (Draft for Comment)", which includes the provision of "canceling the regulation on freezing the pledged bonds for bond repurchase" [4]. - On July 8, 2025, Jiang Huifen, Deputy Director of the Financial Market Department of the People's Bank of China, stated at the Bond Connect Anniversary Forum 2025 that it supports the Hong Kong CMU to cancel the freeze on repurchase pledged bonds and further revitalize the pledged bonds, referring to the international common practice of bond repurchase [5]. International Practice of Bond Repurchase - International bond repurchase is centered around buy - sell - back. Through legal mechanisms and market tools, non - frozen management of pledged bonds is achieved, with the core features of ownership transfer and maximum liquidity [5]. Purposes of Canceling Pledged Bond Freeze - **Enhancing liquidity**: After the central bank's modification, the shift from pledge - style repurchase to buy - sell - back means that pledged bonds change from a frozen state to a temporarily transferable and tradable state, which can greatly enhance bond liquidity [6]. - **Facilitating treasury bond trading**: Canceling the freeze on pledged bonds can increase the number of available bonds in the market and expand the scope of the central bank's bond - buying and selling operations [7]. - **Promoting opening - up**: It is in line with international practices, which helps promote the high - level opening - up of the bond market [7]. Misunderstandings of Canceling Pledged Bond Freeze - **Misunderstanding 1**: It is a wrong view that the reverse repurchase party can re - pledge or replace the pledged bonds. According to relevant regulations, during the repurchase period, both parties cannot use the pledged bonds. Allowing re - pledging may turn bond repurchase into credit repurchase and increase financial risks. Canceling the freeze actually increases the rights of the reverse repurchase party [8]. - **Misunderstanding 2**: There is no causal relationship between canceling the freeze on pledged bonds and the central bank's imminent treasury bond trading. Since large banks have been continuously buying bonds since May 12, 2025, the central bank's restart of bond - buying is not restricted by the issue of pledged bonds. Canceling the freeze is mainly to enhance the liquidity of existing bonds in the long - and medium - term [9]. Stock - Bond Switch under Economic Expectation Revision - The current pattern of bond yield increase may shift, and if the economy does not decline significantly in the second half of the year, funds in the bond market may gradually flow out. The rhythm may be similar to that in 2009 and 2020, with the stock market rising first, followed by a lagging increase in bond yields and finally an increase in the capital interest rate [10].

Group 1 - The People's Bank of China (PBOC) has drafted a proposal to amend certain regulations, which is now open for public consultation [1] - The proposal clarifies the legal status of the Shanghai Clearing House as a bond registration, custody, and settlement institution [1] - The proposal aims to facilitate open market operations involving government bonds and promote a high level of openness in the bond market by removing the requirement to freeze collateral for bond repurchase agreements [1] - The proposal also includes modifications to the regulations regarding the disclosure of financial bond information based on current practices [1]

Core Viewpoint - Japan's Finance Minister, Kato Katsunobu, will continue to monitor the developments regarding the United States' "retaliatory tax" proposal [1] Group 1 - The Japanese government is currently unable to implement bond buybacks [1] - The government will carefully consider the possibility of bond buybacks in the future [1]