Investor Presentaiton
Updated Guidance on CIBM Access
In Q2 2016, China regulators released several FAQs and procedures for ROIls entering the China Interbank Bond Market
(CIBM) and China Interbank Foreign Exchange Market (CIFM).
For Overseas Financial Institutions:
For ROIls:
PBOC and SAFE publishes
FAQs,
May 2016:
Implementation Details and SAFE Notices provide
explicit guidance and clarification for foreign
investors to enter CIBM
April 2016:
May 2016:
CCDC, SHCH and CFETS releases operation
guidelines for foreign investors to invest in CIBM
Key issues solved/clarified:
PBOC released FAQs and procedures on Foreign Central
Banks, Sovereign Wealth Funds and Supranational (Rolls)
investing the CIBM and CIFM to address many technical details.
Account opening/closure
Network connect set up /termination
Investment quota and liquidity
Product and Agreement
Inbound/Outbound transfer
RMB special account
Agent Selection
Overseas Financial Institution
ROII
Complete within 3 days, given documents submitted are in good order.
Complete within 3 days, given the submitted documents are in good order and there is zero balance in the
account with no outstanding rights.
No quota limitation. No fund repatriation restriction.
Cash bond
Bond lending: Lending agreement
Bond forward, IRS and FRA (hedging purpose) : NAFMII.
Principal injection and repatriation are allowed in either
RMB or foreign currency.
Maintain FX/RMB currency proportion for inbound and
outbound with no more than 10% deviation, except the first
repatriation.
Bond derivatives: NAFMII or ISDA
Bond Repurchase: NAFMII
Bond lending: Lending agreement
Principal injection and repatriation are allowed
in either RMB or foreign currency after FX
conversion onshore
Open with domestic bank, which shall be used exclusively Open with PBOC or domestic bank, which shall
for fund settlement of bond trading.
N/A
be used for fund settlement of bond trading.
Dual agent allowed. Non-trade transfer allowed
between PBOC
account.
and
commercial
banks
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