Core Viewpoint - The recent announcement by the Shanghai and Shenzhen Stock Exchanges, in collaboration with China Securities Depository and Clearing Corporation, to support foreign institutional investors in engaging in bond repurchase transactions is a significant step towards enhancing China's financial openness and market functionality [1][6]. Group 1: Market Liquidity and Depth - The introduction of bond repurchase business will fundamentally change the current situation where foreign investors primarily adopt a "buy and hold" strategy, allowing them to easily access RMB funds without having to sell bonds under liquidity pressure [2][7]. - This mechanism will enhance the flexibility and willingness of foreign investors to hold RMB-denominated bonds, injecting continuous liquidity into the market [2][7]. - The involvement of diverse international participants in the repurchase market will improve price discovery, making funding prices more reflective of global capital supply and demand, thus transitioning the domestic bond market from a "financing venue" to an internationally influential "pricing center" [2][7]. Group 2: Broadening Foreign Financing Channels - The availability of repurchase tools will optimize the investment ecosystem for foreign capital, allowing for more flexible leverage management and liquidity adjustment, which is crucial for long-term investors like sovereign wealth funds and pension funds [3][8]. - This development is expected to significantly enhance the attractiveness and stickiness of the bond market, guiding cross-border capital to become stable capital that supports China's long-term economic growth [3][8]. - The optimization of capital structure will play a vital role in maintaining financial market stability and managing foreign exchange market expectations [3][8]. Group 3: Supporting the Real Economy - The enhancement of bond liquidity will lower the financing costs for enterprises, particularly for private and technology-driven companies that rely on direct financing [4][9]. - As foreign investors find it easier to liquidate or finance their bond holdings through repurchase agreements, their willingness to hold these bonds will increase, leading to lower yield requirements and thus reduced interest costs for companies issuing bonds [4][9]. - Increased foreign participation and a more active repurchase market will introduce more capital into the real economy, while also encouraging domestic issuers to improve corporate governance and financial transparency [4][9]. Conclusion - The support for foreign institutions to participate in bond repurchase transactions, while focused on a specific business, has far-reaching implications for market functionality, investment ecosystem optimization, and enhancing the effectiveness of services to the real economy [10].

■苏向杲 近日，沪深交易所分别与中国证券登记结算有限责任公司联合发布通知，支持境外机构投资者开展交易 所债券回购业务。 通俗来讲，债券回购就是债券持有人把债券抵押给别人来借钱，约定到期还钱并赎回债券，类似"典 当"债券换现金。 其二，拓宽外资融资渠道，广泛吸引长期资本。 对于注重长期稳健投资的国际主权财富基金、养老金、保险资金等"耐心资本"而言，完备的市场基础设 施和对冲工具可得性至关重要。此前，外资在交易所市场缺乏回购这一基础流动性管理工具，制约了其 进行大规模、长周期资产配置的信心与能力。 此次开放，有利于系统性优化外资投资生态。获得回购工具后，外资可开展更为灵活的杠杆管理和流动 性调剂，投资策略得以极大丰富。这将显著提升交易所债券市场的吸引力与黏性，有助于引导跨境资本 转化为伴随我国经济长期发展的稳定资本。此类资本结构的优化，对维护金融市场稳定与外汇市场预期 具有"压舱石"意义。 其三，引导金融活水灌溉实体经济，降低融资成本。 交易所债券市场是民营企业、科创企业等直接融资的重要平台。债券流动性的提升，能够降低企业发债 融资的成本。对境外机构投资者而言，当持有的债券能够便捷地通过回购"变现"或融资，其持有 ...

Core Viewpoint - The Shanghai Stock Exchange International Investor Conference highlighted the importance of the bond repurchase market for domestic institutional investors, emphasizing its role as a liquidity management tool and a flexible investment strategy [1][3]. Group 1: Bond Repurchase Market - The bond repurchase market offers unique advantages in terms of collateral standards and central clearing models, facilitating easier access for investors [3]. - The arrangement of the exchange acting as a central counterparty enhances the trading experience in the repurchase market [3]. Group 2: Future Outlook - Many qualified domestic institutional investors are eagerly anticipating further opening measures in the market, indicating a strong willingness to engage in investment and trading once policies are implemented [3].