Investor Presentaiton
Key Highlights of Expanded FI Programs
In 2016 H1, China took a major step toward encouraging long-term foreign institutional investors to invest in the world's
third-largest bond market.
B
M
Quota Cap
The Announcement encourages
long-term foreign investors to invest
in CIBM and No Quota Cap
for eligible investors.
Investors
Broaden the investors
Banks, insurance companies,
securities companies, funds and
other asset management firms, as
well as the investment products
issued by these institutions; long term
investors recognized by PBOC, such
as pension funds, charity funds,
endowment funds
Bond Instruments
The eligible foreign institutional
investors can invest in products
allowed by the PBOC,
e.g. cash bond, etc.
RMB participating banks can
conduct bond repo
Market Entry
The eligible foreign institutional
investor can participate in CIBM
via filing with PBOC
Shanghai Headquarter
through a bond settlement agent.
Two page registration form with
20 business day turn-around
FX
Transfer RMB from Offshore to onshore. Can conduct FX forward,
swap for hedging bond portfolio, subject to basis risk.
FX conversion only; register with SAFE, conduct via bond
settlement bank
Repatriation
For investor, foreign currency outflow remittance is allowed. Foreign
currency mix has to maintain similar level as its inflow
to China, within 10% deviation
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