On February 29, the People's Bank of China releasedNotice on Matters Concerning the Counter Business of the Interbank Bond Market(hereinafter referred to as the "Notice"), effective as of May 1.
It is understood that compared with Announcement No. 2 of 2016, the Notice further clarifies three points:
Clarify the types of counter business and the way of trading. All kinds of bonds that have been traded and circulated in the inter-bank bond market can be invested and traded through the counter on the premise of complying with the investor suitability requirements.
Optimize the management rules for investors to open accounts. Investors who have opened an account in the interbank bond market can open a bond account with an over-the-counter business institution.
Foreign investors can invest through the over-the-counter channel. Foreign investors who have been granted access to the inter-bank bond market may open bond accounts through over-the-counter business start-ups and domestic custodian banks.
At the same time, the notice shows that at present, there are 30 commercial banks in the country to open counter bond business, investors can apply for opening a counter bond account through the business outlets or electronic channels of the counter business opening agency, and the counter business opening agency provides services such as bond trading, registration and custody, settlement and clearing, and bond inquiry. The over-the-counter business establishment provides over-the-counter bond business services for individuals and enterprises, mainly treasury bonds, local government bonds and policy financial bonds.
It has been learned that since 2002, in order to increase the channels for individuals and enterprises to purchase treasury bonds, the People's Bank of China, in conjunction with relevant departments, has promulgated rules for the management of over-the-counter bond business, and has gradually expanded the scope of bonds.
Regarding the background and consideration of the "Notice", the relevant person in charge of the People's Bank of China said that the first financial work conference proposed to do a good job in inclusive finance and promote the high-quality development of the bond market. In order to implement the spirit of the meeting, the People's Bank of China issued the NoticeWe will further expand the variety of over-the-counter bond investments and optimize the relevant mechanisms and arrangements to facilitate the bond investment of residents and other institutional investors, increase residents' property income, and accelerate the development of a multi-level bond market.
In August 2023, the People's Bank of China (PBoC) issued the Notice on Matters Concerning the Counter Business of the Interbank Bond Market (Consultation Paper), which was open to the public for comments from August 4 to September 3. During the comment period, a total of 26 comments were received from 10 institutions, and most of the opinions have been reasonably adopted.
Intern reporter Yingcao Zhuoma.
Intern Editor: Li Haochen.