BEIJING, Sept. 3 (Xinhua) -- China's central bank, securities and foreign exchange regulators invited opinions on a draft document on foreign institutions' investment in China bond market from Wednesday to October 1, showed an announcement posted on Chinese central bank's website Wednesday.
The three policymakers said the document was drafted to strengthen systemic, overall and coordinated opening up of China's bond market and further facilitate foreign institutional investment in RMB-denominated bond assets.
Under the document, foreign institutional investors here cover foreign central banks or monetary authorities, international financial organizations, sovereign wealth funds, foreign financial institutions such as commercial banks, securities firms, fund management firms, futures firms, trust firms and other asset management institutions, and mid- and long-term institutional investors including pension funds, charity funds, donation funds, etc.
The document says that foreign investors that have already entered China's interbank bond market can directly invest or invest via the bond connect programs in China's exchange-based bond market.
Foreign institutional investors can transact on China's bond market cash bonds, related derivatives, and bond funds including exchange-traded funds and conduct other related transactions permitted by the Chinese central bank and China Securities Regulatory Commission (CSRC), the securities watchdog.
For foreign sovereign institutions, they thus need to apply to the Chinese central bank for investment in China's bond market, and for foreign commercial institutions, they need to file applications with Chinese central bank's Shanghai Head Office.
According to the document, foreign institutional investors will not have to apply for investment in China's bond market with their concrete products any more. (Edited by Duan Jing with Xinhua Silk Road ,duanjing@xinhua.org)
A single purchase
