China'S Bond Market Is The Most International Market.

The opening speed of China's bond market to international investors has become the leader in the whole Chinese financial market.

According to statistics, as of April this year, the Central Bank of China has approved 32 foreign-funded institutions to participate in the inter-bank bond market with a scale of 37 trillion and 800 billion yuan (6 trillion and 100 billion US dollars) this year, bringing the total number of foreign institutional investors to 152, accounting for 38.6% of the total number of inter bank bond market institutions in China. By comparison, 34 were approved in 2014.

The central bank data show that foreign institutions currently have 713 billion yuan (US $115 billion) bond positions in China, an increase of 78% since December 2013. In contrast, even under the backdrop of such a hot stock market in China, foreign institutions held a stock position of 601 billion yuan, less than the bond position.

For China, before the financial and capital account is fully open, the gradual registration of overseas institutions is conducive to cultivating the market in advance, and is closely related to the process of RMB internationalization.

Accelerated approval Foreign investors Entry can offset some capital outflows from another aspect. Besides, when China's debt crisis has not yet been resolved, foreign bond investors can help alleviate the debt crisis. Economic pressure Because of excessive capital in the bond market, the interest rate of the entire market may be depressed or the interest rate stability will be maintained.

"The more types of investors you have, the difference between their motives and their holding time, which increases the liquidity of the market." Subash Pillai, Goldman Sachs portfolio manager, said.

However, the negative impact that can not be ignored is that if the amount of foreign capital is excessive, China's financial market may be exposed to international influence, thus causing the risk of ups and downs.

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In accordance with the decision of the State Council on cancelling and adjusting a number of administrative examination and approval items, etc., the people's Bank of China cancelled the examination and approval of bond transactions and circulation in the inter-bank bond market (2015 [11]). The management policy of adjusting the inter-bank bond market's bond trading and circulation is hereby announced as follows:

1. All kinds of bonds issued according to law can be circulated in the inter-bank bond market after the completion of the relationship between creditor and debtor and completion of registration.

Two. All kinds of bonds mentioned in the notice include, but are not limited to, government bonds, central bank bonds, financial bonds, corporate bonds, corporate bonds, non-financial corporate debt financing instruments and other corporate credit bonds, asset backed securities and so on.

Three, the national interbank lending center (CBDC) and other trading venues agreed by the PBC provide services for the circulation of bonds. At the same time, the interbank lending center takes the responsibility of the transaction database, and is responsible for centralizing the electronic records of transaction data.

Four, the central government bond clearing and settlement company limited and the interbank market clearing company Limited by Share Ltd (collectively referred to as the bond registration and trust settlement institution) should transmit electronic transactions to the interbank lending center on the day of the registration of bonds.

The information of bond transaction and circulation elements mainly includes: Securities name, securities short, code of securities, total issuance, time limit, annual interest rate, face value, interest bearing method, interest frequency, issuing date, interest date, debt and debt registration date, trading flow termination date, payment date, issuing price, debt rating, subject rating, rating agency, information containing rights, prepayment information, floating interest debt information and other necessary information.

Five, issuers or underwriters should provide the initial holder list and hold amount of the bonds to the interbank lending center on the day of the registration of the bonds. The issuer or the lead underwriter shall also provide the interbank lending center with a range of private directional investors.

Six, when the interbank loan center receives a complete information about the elements of the transaction of the bonds, it should, within one working day, process the circulation and trading procedures of the bonds according to the requirements of this announcement.

Seven. During the period of bond trading and circulation, the bond registration and trustee clearing institution shall inform the interbank lending center promptly after receiving the change report of the bond trading and circulation information submitted by the issuer or the main underwriter.

Eight, during the period of bond trading, the issuer shall perform the obligation of information disclosure in accordance with the relevant provisions of the inter-bank bond market.

Nine. For major events that affect the payment of bonds on a scheduled basis, the issuer shall, at the first time, announce to the market participants through the interbank lending center, the bond registration and trust settlement institution, including, but not limited to, the following matters:

(1) breach of a major debt or failure to repay debts due;

(two) serious losses or heavy losses;

(three) issuers reduce capital, merge, split up, disband, trust, suspend business or apply for bankruptcy.

(four) major litigation involving issuers;

(five) it involves the change of the guarantor's main body or the significant changes in the operation and finance, such as the issuance of a guarantee.

(six) other major issues stipulated by the people's Bank of China.

Ten, during the period of bond trading, the issuer shall not engage in spot trading with the bonds issued by himself as the underlying assets, except that the issuer makes early redemption in accordance with the relevant provisions or contracts.

Eleven, during the period of bond trading, when a single investor holds more than 30% of the amount of the issue, the bond registration and trustee clearing institution should inform the interbank lending center promptly and disclose the information.

Twelve. During the period of the circulation of bonds, investors should timely disclose the information through interbank lending centers.

(1) carry out bond repurchase transactions with the bonds issued by them as the underlying assets;

(two) bond transactions with other subsidiaries (branches) under the parent company or the same parent company;

(three) the self financing account of the asset manager carries on the bond transaction with its asset management account;

(four) bond transactions between different accounts managed by the same asset manager;

(five) other circumstances stipulated by the people's Bank of China.

Thirteen, during the period of bond trading, investors should not manipulate bond prices through various acts such as bond repurchase transactions issued by their own bonds.

Fourteen, investors in the inter-bank bond market bond trading behavior should also comply with its regulatory authorities on the provisions of related transactions.

Fifteen. Under the following circumstances, the bond transaction shall be terminated.

(1) the issuer fully redeemed the bonds in advance.

(two) the issuer shall be dissolved in accordance with the law, be ordered to close down or be declared bankrupt.

(three) one working day before the maturity date of the bond;

(four) other situations that lead to the loss of creditor's right and debt relationship.

Sixteen, during the period of bond trading, the interbank lending center and the bond registration and trustee clearing institution should do a good job in the monitoring of investors' bond transactions, liquidation, trusteeship and settlement. If there is any abnormal situation, it should be processed in time and report to the people's Bank of China. The interbank market dealers association of China should strengthen self-regulation of investors.

Seventeen, the interbank lending center and the bond registration and trust settlement institution shall formulate corresponding business rules according to the requirements of this announcement and submit them to the people's Bank of China for record.

Eighteen, the announcement will take effect from the date of promulgation. The rules for examination and approval of bond transactions and circulation in the national inter-bank bond market (announcement of the people's Bank of China [2004] nineteenth), announcement on matters such as transaction and settlement of the asset backed securities in the inter-bank bond market (Announcement No. fifteenth [2005] of the people's Bank of China), the announcement on matters related to the trading and circulation of corporate bonds into the inter bank bond market (announcement by the people's Bank of China [2005] thirtieth), and announcement of policy adjustment matters on the bond trading and circulation audit (the announcement of the people's Bank of China 2009 [first)) shall be repealed simultaneously.