Tuesday March 1 2016
News Source: Global Exchanges
Focus: Fixed Income
Type: General
Country: China
Link: http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/3021203/index.html
The Peoples Bank of China (PBoC) has published Announcement No.2 (2006) to promote China’s Inter-Bank Bond Market (CIBM) among qualified foreign institutional investors.
The PBoC has expanded the types of eligible investors. Included in the eligible overseas institutional investors are commercial banks, insurance companies, securities firms, asset management companies, as well as other `mid-to-long term institutional investors` such as pension funds, charity funds and donation funds. Additional conditions have been implemented for foreign institutional investors.
Eligible overseas institutional investors shall engage qualified Peoples Republic of China or settlement agents for trading and settlement on CIBM. The settlement agents will review investors` eligibility and only accept appointments of qualified investors. Furthermore, the circular provides the conditions for foreign institutional investors to provide custody services, clearing and settlement.
Finally, it was stated that the circular shall apply to institutional investors in Hong Kong, Macau and Taiwan.
Click on the link above for further details.