BEIJING, May 25 (Xinhua) -- China Foreign Exchange Trade System (CFETS) announced Monday to support international payment model services to facilitate foreign investment in China's bond market, reported Xinhua-run Xinhua Finance citing news from CFETS.
Under the service model, foreign investors can adopt widely-used international payment methods and get quotations containing transaction-related fees from domestic market makers to conclude bond transactions under the China interbank bond market (CIBM)-Direct request for quotes (RQF) services and the Bond Connect scheme.
CIBM Direct scheme provides a route for international investors to access China's interbank bond market and foreign institutions can trade bonds directly through banks holding relevant licenses in the Chinese mainland.
Bond Connect is a mutual access scheme allowing investors from Chinese mainland and overseas to trade bonds in each other's interbank bond market. Northbound trading commenced on July 3, 2017, offering CIBM access to a broader group of international investors, while southbound trading will be explored at a later stage.
Since Monday, the international payment model services have been available to foreign investors in bond transactions via the Bond Connect scheme.
The report said the international payment model service better fits in the payment habits of foreign investors and further optimizes their transaction experience.
By Monday, 40 market makers have provided the international payment model services under the CIBM Direct and Bond Connect schemes.
CFETS is a major global trading platform and pricing center for RMB and related products. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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