BEIJING, March 6 (Xinhua) -- The People's Bank of China (PBOC), the Chinese central bank, issued recently a circular, effective from May 1, 2024, to boost over-the-counter (OTC) business on interbank bond market, reported Xinhua Finance.
The circular specifies the product types and transaction methods of interbank bonds tradable through OTC channels.
If meeting related suitability requirements, investors including qualified individuals, enterprises and financial institutions are allowed to invest in bonds of different types currently tradable on interbank bond market through OTC service providers.
With optimized management rules over accounts opening, the circular permits investors who have opened related accounts on interbank bond market to establish bond accounts through OTC service providers.
The circular also allows overseas investors to invest in interbank bonds through OTC channels. Those who have accessed interbank bond market are permitted to open bond accounts through OTC service providers and their custodian banks in China.
At present, 30 commercial banks have started providing OTC services for related bond investment in China and investors can apply for OTC bond accounts at their business outlets or through online channels. OTC service providers provide bond quotation, trading, registration and custody, settlement and clearing, and inquiry services.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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