Recently, the People's Bank of China issued the Notice on Matters Related to the Counter Business of the Interbank Bond Market, marking another important reform of China's bond market. The reform will further expand the variety of over-the-counter bond investment, optimize the relevant mechanism arrangements, and provide residents and other institutional investors with more diversified and convenient bond investment options, so as to increase residents' property income and accelerate the development of a multi-level bond market.
It is understood that the over-the-counter bond market is an extension of the inter-bank bond market to retail finance and inclusive finance, and is an important link in the construction of a multi-level bond market. Through the over-the-counter channel, individual and corporate investors can more easily participate in the bond market and share in the development of the bond market.
According to the Circular, all kinds of bonds that have been traded and circulated in the inter-bank bond market, including treasury bonds, local ** bonds, financial bonds, corporate credit bonds, etc., can be invested and traded over the counter. This means that investors can buy and sell bonds directly at the over-the-counter business establishment without the consent of the issuer.
In addition, the Circular also optimizes the management rules for investors to open accounts and improves the convenience of counter business. Investors who have already opened an account in the inter-bank bond market can open a bond account directly at the over-the-counter business opening institution without the approval of the People's Bank of China. This reform will greatly lower the threshold for investors to open an account and attract more investors to participate in the bond market.
It is worth mentioning that the Notice also clarifies that foreign investors can invest through the over-the-counter channel. Foreign investors who have been allowed to enter the inter-bank bond market can participate in investment in China's bond market by opening bond accounts with over-the-counter business start-ups and domestic custodian banks. This measure will help attract more foreign funds into China's bond market and promote the international development of the bond market.
It is understood that at present, 30 commercial banks across the country have opened over-the-counter bond business, opening 6.3 million accounts for investors. These banks include both national banks and some small and medium-sized banks. Investors can apply to open a counter bond account at the business outlets or e-banking channels of these banks, and after binding it with their bank card, they can buy and sell bonds through bank outlets or apps during trading hours, and check the bonds** and bond balances.
For investors, over-the-counter bonds have obvious advantages over bank deposits and wealth management. First of all, the security of over-the-counter bonds is higher, because the treasury bonds, local ** bonds and other varieties traded over the counter are all first-class credit, with extremely high security. Second, over-the-counter bonds typically yield higher yields than bank deposits of the same maturity, providing investors with higher yields. Finally, over-the-counter bond trading is flexible, and investors can sell bonds at any time according to their own needs or use bonds as collateral to apply for pledge loans from banks, and have strong liquidity ability.
Industry experts said that investing in the bond market through over-the-counter channels can efficiently convert savings into bond investment and increase residents' property income. At the same time, bonds take into account safety, profitability and liquidity, which is an important way to broaden residents' investment channels and increase residents' property income.
As the over-the-counter bond market continues to grow, more investors will participate in the market in the future. At the same time, with the continuous enrichment of bond varieties and the continuous improvement of investment mechanisms, the over-the-counter bond market will provide investors with more diversified and convenient investment options. This will help promote the development of China's multi-level bond market, promote the development of direct financing, and optimize the financial structure.