《公告》首次系统明确了境外机构投资者参与中国债券回购业务的范围、方式、风险管理和资金结算等 核心环节，体现出多项制度创新和操作优化。 汇丰银行（中国）有限公司副行长兼资本市场及证券服务部联席总监徐飞对新华财经表示，银行间债券 回购业务的扩大开放是加快构建多层次债券市场体系的又一重要举措，进一步拓展了人民币债券的应用 场景，令中国债券市场的"磁吸力"持续释放。 一是参与主体全面扩大。此前，仅有部分境外主权类机构、清算行和参加行可参与银行间债券回购市 场。本次《公告》将范围扩展至所有可通过直接入市或"债券通"渠道投资中国债券市场的境外机构，包 括商业银行、保险公司、资管机构、养老基金等中长期投资者，基本覆盖主流境外机构类型，实现准入 标准的统一和透明。 二是交易模式与国际惯例接轨。值得注意的是，《公告》明确境外投资者可采用"标的债券过户和可使 用"模式开展回购交易。多家支持客户开展相关业务的外资行纷纷感叹称，"这类似于国际通行的买断式 回购，与国内市场传统的质押式回购即债券冻结在正回购方形成区别，这样的安排更符合境外投资者的 交易习惯，有利于降低操作风险、提升违约处置效率，增强其参与信心。" 新华财经北京9月26 ...

Group 1 - The issuance of Panda bonds by the New Development Bank, amounting to 7 billion yuan, highlights the growing role of emerging economies in the global financial system [1] - The total issuance of Panda bonds in the interbank market has reached 111.2 billion yuan this year, with foreign government institutions, international development organizations, and multinational corporations accounting for 50% of the issuance, an increase of 27 percentage points compared to the entire year of 2024 [1][2] - The diversification of issuers in China's bond market indicates a significant enhancement in its internationalization level, attracting global capital participation [2][3] Group 2 - Panda bonds are becoming an important RMB financing channel for foreign institutions, with various international development organizations and multinational companies participating in the market [3] - The Chinese bond market offers a comparative advantage in financing costs, with relatively low interest rates and significant market stability, making it attractive for global quality issuers [3][4] - The robust growth of the Chinese economy provides a solid foundation for the bond market, offering issuers stable expectations [4]

Core Viewpoint - The article focuses on the high-quality development direction of China's bond market internationalization, highlighting significant progress in areas such as openness, foreign investment scale, green sovereign bond innovation, and market connectivity [1][2]. Summary by Relevant Sections Progress in China's Bond Market Internationalization - China's bond market has seen notable advancements, characterized by increased openness and expanded scope since the implementation of the Qualified Foreign Institutional Investor (QFII) system in 2002 [3]. - In 2024, the interbank bond market recorded a transaction volume of 377.8 trillion yuan, with an average daily transaction of 1.5 trillion yuan, while the exchange bond market had a transaction volume of 41.7 trillion yuan [3]. - The scale of foreign investment in RMB bonds has been rising, with foreign institutions holding a total of 4.5 trillion yuan in RMB bonds as of April 15, 2025, marking an increase of over 270 billion yuan from the previous year [5]. Green Sovereign Bonds as a New Breakthrough - The domestic green finance market has developed rapidly, with green bond stock reaching approximately 2.1 trillion yuan by the end of 2024 [8]. - In February 2025, China issued its first green sovereign bond worth 6 billion yuan, marking a significant step in integrating green elements into the sovereign offshore multi-currency yield curve [8]. Deepening Market Connectivity - The range of investor participation has expanded, allowing various types of investors to engage more easily in the bond market [9]. - The infrastructure of the bond market has been continuously improved, enhancing operational efficiency and reducing transaction costs [9]. New Opportunities for Bond Market Internationalization - China's economy is projected to grow at around 5% in 2025, providing a solid foundation for the internationalization of the bond market [10]. - The high level of financial openness has significantly enhanced the recognition and acceptance of RMB bonds in international markets [11]. - The relative stability of RMB bonds has become more apparent amid increasing concerns over dollar assets, making them an attractive option for global investors [14]. International Experience to Learn From - Mature bond markets typically feature a comprehensive legal framework, rigorous regulatory structures, and effective risk management systems, which can serve as a reference for China's bond market development [15][16]. - A multi-tiered operational mechanism is common in developed bond markets, where institutional investors play a dominant role, ensuring market stability and liquidity [17]. Policy Recommendations for High-Quality Development - It is suggested to enhance the trading mechanism of the bond market to better serve the real economy, including establishing a unified market infrastructure and optimizing trading mechanisms [21]. - Strengthening the role of government bonds as a market benchmark and improving the structure of government bond issuance is recommended to address asset scarcity [23]. - Expanding funding channels and promoting a diverse investor structure, including encouraging pension funds and insurance capital to invest in long-term bonds, is also advised [24].

Core Insights - The Bond Connect has achieved significant milestones in its seven years of operation, enhancing the maturity and international influence of China's bond market [1][2] - The internationalization process of China's bond market is accelerating, with foreign institutions increasing their holdings in the interbank bond market [2][3] Group 1: International Influence - The "Northbound" channel of Bond Connect has been operating smoothly since its launch on July 3, 2017, with a transaction volume of 979.2 billion yuan in May 2023 and an average daily transaction of 46.6 billion yuan [1] - As of the end of May 2023, there are 821 investors participating through the "Northbound" channel [1] - The "Southbound" channel was launched on September 24, 2021, and has seen rapid growth, with 865 bonds under custody and a balance of 442.02 billion yuan as of the end of May 2023 [1] Group 2: Market Participation - As of the end of May 2023, foreign institutions held 4.22 trillion yuan in the interbank bond market, accounting for approximately 3.0% of the total custody volume, with continuous increases over the past nine months [2] - The Bond Connect has facilitated the inclusion of Chinese bonds in major global bond indices, further enhancing the market's international standing [1] Group 3: Derivative Tools and Policy Support - The Bond Connect has seen ongoing optimization, making it a key channel for foreign investors in China's bond market, with increasing trading activity [3] - The launch of the "Swap Connect" in May 2023 aims to address the demand for risk hedging strategies for cross-border investments, with new standardized interest rate swap contracts introduced [3] - The People's Bank of China is expected to accelerate the introduction of related policies to enhance the Bond Connect and Swap Connect, providing more financial tools for foreign investors [4]

Core Insights - The Bond Connect "Northbound" program has significantly grown since its launch eight years ago, becoming a crucial channel for foreign investment in China's financial market [1][2][3] - As of May 2023, the average daily trading volume of the "Northbound" program reached 48.2 billion yuan, a more than 31-fold increase from the initial 1.5 billion yuan in its first month [2][3] - The program has facilitated the entry of 835 foreign investors into the market, contributing to the rapid growth of foreign holdings in Chinese bonds [1][3] Bond Connect Development - The "Northbound" program was launched on July 3, 2017, providing a convenient access point for global investors to participate in the Chinese bond market [2] - The trading activity on the first day was robust, with 19 quoting institutions and 70 foreign institutions completing 142 transactions worth 7.048 billion yuan [2] - The program has become a vital channel for foreign investors, with the total amount of RMB bonds held by foreign investors continuously increasing [2][3] Market Impact - As of May 2025, foreign institutions held 4.35 trillion yuan in the interbank bond market, accounting for approximately 2.6% of the total custody volume [3] - The introduction of the "Bond Connect" has enhanced market liquidity and reduced financing costs for Chinese enterprises [3] - The program has also solidified Hong Kong's status as a financial hub, increasing its role in the global financial system [3] Expansion of Connectivity - In addition to the "Northbound" program, the "Southbound" program was launched on September 24, 2021, allowing domestic investors to access overseas assets [4] - As of May 2023, the "Southbound" program has seen significant growth, with 918 bonds and a custody balance of 532.94 billion yuan [4] - Future expansions of the "Southbound" program are expected to enhance asset allocation for investment institutions and increase market liquidity [4] Derivative Market Development - The "Northbound Swap Connect" was launched on May 15, 2023, allowing foreign investors to participate in the onshore financial derivatives market [5] - By June 2025, the "Northbound Swap Connect" had accumulated a trading volume of 7.16 trillion yuan, becoming a primary channel for managing RMB asset interest rate risks [5] Future Outlook - The outlook for China's bond market remains promising, with ongoing efforts to enhance openness and improve the investment environment [6][7] - Since 2019, Chinese bonds have been included in major international bond indices, with increasing weightings, indicating growing global interest [6] - The current foreign ownership of Chinese bonds is relatively low at 2.4%, suggesting significant room for growth in foreign investment [6][7]

Core Insights - The "Swap Connect" mechanism has provided foreign investors with convenient interest rate risk management tools, enhancing the allocation value of RMB assets and promoting the internationalization of China's bond market [1][6] - The number of foreign investors participating in "Swap Connect" has been steadily increasing, with a more diverse geographical distribution [1][6] - The mechanism has undergone continuous optimization, which is expected to further enhance trading activity [1][3] Group 1: Development and Impact - Over the past two years, "Swap Connect" has met the demand of foreign institutional investors for RMB interest rate risk management, leading to an increase in both the number of participants and trading volume [2][6] - Prior to "Swap Connect," foreign investors could only use offshore financial instruments to hedge domestic interest rate risks, which were not fully compatible with domestic risks and had lower liquidity [2][3] - The average daily settlement amount for "Swap Connect" reached 24.8 billion RMB in the first quarter of this year [2] Group 2: Regulatory and Structural Enhancements - The People's Bank of China has released several regulatory updates to optimize the "Swap Connect" framework, including the introduction of new products and improved functionalities [3][4] - The optimization measures aim to align "Swap Connect" more closely with international trading standards and better meet diverse risk management needs [3][4] Group 3: Future Prospects and Market Expansion - There are expectations for further expansion of "Swap Connect," including the potential for a southbound channel to enhance the two-way opening of the bond market [4][5] - The international appeal of China's bond market has been increasing, with over 1,160 foreign institutions participating and holding a total of 4.5 trillion RMB in bonds [6][7] - The bond market's total scale has reached 183 trillion RMB, making it the second largest in the world, with significant foreign investment potential still remaining [7][8]