Sino-Singapore Jingwei, May 27th. According to the website of the centralbank, on the 27th, the central bank, the China Securities Regulatory Commission and the foreign exchange bureau issued a joint announcement [2022] No. 4 (onmatters related to further facilitating foreign institutional investors to invest in the Chinese bond market) (below Called the "Announcement"), which came into force on June 30.
Regarding the entry of foreign institutional investors into the market, the relevant person in charge of the central bank said thatthe scope of foreign institutional investors who have been admitted to the market has not changed, the procedures have been further simplified, and the scope of investment can be extended to theexchange bondmarket.
In terms of market entry procedures,foreign institutional investors enter the market as legal persons.For the newly added products of the institutions to be filed and the institutions that have already filed, there is no need to record each product one by one.For the products that have been filed, the existing bond account can be retained in theinter-bankbond market, or it can be merged into the legal person level, and the relevant financial infrastructure should provide non-transaction transfer services.
Foreign institutional investors entering the market can directly invest in the exchange bond market after applying for the opening of a securities account with relevant filing certificates and other materials.Invest in the exchange bond market in an interoperable way.Both methods do not require separate filing or approval procedures.The Exchange will work with China Securities Depository and Clearing Co., Ltd. to formulate specific business rules as soon as possible to clarify matters such as account opening, trading, registration, and settlement of foreign institutional investors who have entered the inter-bank bond market.
The above-mentioned person in charge stated that according to the "Announcement", the inter-bank bond market settlement agency and custodian bank models are parallel, for foreign institutional investors to choose independently.
Under the settlement agency mode, foreign institutional investors can negotiate with the settlement agent independently on how to agree on the rights and obligations of both parties, andopen a bond account with a bond registration and settlement institution recognized by thePeople's Bank of China.The Shanghai Headquarters of the People's Bank of China no longer requires the submission of a settlement agency agreement.
Under the custodian bank model, foreign institutional investors can directly or through their overseas custodian banks, entrust qualified domestic custodian banks to conduct bond custody.
The above-mentioned person in charge also mentioned that domestic custodian banks should provide relevant services to overseas institutional investors in accordance with the "Announcement", comply with laws and regulations, and do a good job in monitoring data and information collection and reporting, and fully implement various aspects of the inter-bank bond market. regulatory requirements.Domestic custodian banks shall establish and improve relevant mechanisms and arrangements, effectively perform substantive independent custody duties, and strictly separate custody of the property of foreign institutional investors under custody from other properties.
At the same time, the central bank and the foreign exchange bureau will, in accordance with the requirements of the "Announcement",promptly release the regulations on the management of funds for foreign institutional investors to invest in China's bond market.The fund management regulations will unify the cross-border management policies of foreign institutional investors' funds, integrate existing foreign exchange management requirements, and clarify business registration, fund exchange, cross-border receipts and payments, foreign exchange hedging, etc.,to further facilitate foreign institutional investors to invest in Chinese bonds. market.(Sino-Singapore Jingwei APP)
(Responsible editor: RobotRF13015)
