Friday 04 August 2017

What does access to the China Interbank Bond Market mean for Institutional Investors?


BNP Paribas (China) Limited has the Type A license to operate and provide full agency services (trade execution, settlement and local custodian) to foreign institutions, accessing the China Interbank Bond Market (CIBM), the world's third largest bond market after the US and Japan.

A Grand Opening, a Global Markets and Securities Services joint whitepaper, explains the impact of this deregulation on foreign institutions in accessing the world's third largest bond market, worth some RMB49 trillion (US$7.7 trillion). The report explains and weighs the opportunities for long term investors to consider. Practical operational challenges are also addressed from repatriation rules to tax and prefunding rules.

As one of the four foreign banks with the Type A license, direct access could not be simpler. CIBM accounts for the bulk of debt securities (around 90% of the total market cap), the relaxation of regulations have unleashed many new opportunities, especially if you are interested in direct access to the onshore interbank bond market in China.

 


Rate this article :
50
53
1
53
 
 

Give us your feedback

Please validate CAPTCHA.

RELATED ARTICLES
connecting-international-investors-to-china

The opening of Chinese capital markets is creating an investment opportunity too big to ignore.

active-passive-sceptic-china-investors-turning-the-full-360
With its equity market opening faster than ever before and bonds soon to follow, investors should act...
With its equity market opening faster than ever before and bonds soon to follow, investors should act now on China.
bnp-paribas-gains-licence-to-underwrite-panda-bonds-in-china
Onshore issuance by foreign companies is expected to rise.
Onshore issuance by foreign companies is expected to rise.
investors-to-drive-china-s-green-transformation
As fiduciary duty grows, investors see ESG as too big to ignore. Has the moment arrived for sustainable...
As fiduciary duty grows, investors see ESG as too big to ignore. Has the moment arrived for sustainable investing in China...
bnp-paribas-recognised-as-rmb-house-of-the-year-2018
Strong global footprint and domestic franchise keeps BNP Paribas ahead of its competition.
Strong global footprint and domestic franchise keeps BNP Paribas ahead of its competition.
{POPUP_CONTENT}