China’s central financial institution issued new guidelines on Friday to make the nation’s bond market extra enticing to international institutional traders, increasing foreign money hedging channels and making it simpler for them to repatriate funds.
China will unify its guidelines on money accounts and money funds for international traders and enhance the way in which it manages international change gross sales and purchases for international traders, in accordance the principles revealed on the central financial institution’s web site.
The foundations “will probably be conducive to additional facilitating international institutional traders’ funding in China’s bond market,” the central financial institution mentioned, asserting the newest of a number of steps taken over the previous few months to make the bond market extra enticing to international traders.
China will encourage international institutional traders to make use of the yuan in cross-border settlements, and full offers by China’s Cross-Border Interbank Cost System (CIPs), in line with the principles that can take impact from Jan. 1, 2023.
The adjustments will enable institutional traders to switch funds held of their particular accounts beneath the Certified Overseas Institutional Investor (QFII) scheme and its yuan-denominated sibling, RQFII, and funds of their bond market particular accounts.
In July, China mentioned it could facilitate international funding in its bond market, pledging to chop service charges, enhance abroad entry to international change hedging, and streamline the method of opening accounts.
Supply: Reuters