In order to improve
arrangements of currency conversion and FX risk management underBond Connect scheme,
China Foreign Exchange Trade System (“CFETS”) has improved arrangements for
foreign institutional investors of Bond Connect Northbound Trading (“Bond
Connect investors”) who participatein the Bank-to-Customer Market. The details
are as follows:
I. Filing Requirements for Overseas
Bond Connectinvestors specified within the
scope ofInterim Measures No. 1 issued by the People’s Bank of
China (PBC) may, after filing with CFETS by themselves or througha Hong Kong
SAR Settlement Bank, directly trade with Hong Kong SAR Settlement Banks as
their customers. Each Bond Connect investor canselect no more than three Hong
Kong SAR settlement banks to conduct currency conversion and foreign exchange
1. Filing Procedures
(1) Bond Connect investors shall, before
conducting relevant businesses, appoint one Hong Kong SAR settlement bank as Primary
Settlement Bank and other Hong Kong SAR settlement banks as General Settlement Banks.
OnceBond Connect investors change their Hong Kong SAR settlement banks, theyshould
file such change with CFETS within three business days.
(2) Bond Connect investors may, through
bondholders, conductcurrency conversion and foreign exchangehedging services inPrimary
Settlement Banks and General Settlement Banks.
(3) Each Bond Connect investor shall,
through bondholders, open an RMB cash accountsinonly one Primary Settlement Bank
for the specific purpose of RMB fund transfer and settlement under the Bond
2. Filing Materials
(1) Filing Form
Name and contact information of the
selected Hong Kong SAR Settlement Bank(s);
Confirmation of the signing of derivatives
agreement(s) with the Hong Kong SAR Settlement Bank(s) (if to conduct FX
(2) Other documents required by CFETS.
All aforementioned materials and completed
forms should be stamped with the official seal or signed by an authorized
signatory (attach the signature authorization).
II. Information Reporting
1. Reporting Entities
The Hong Kong SAR Settlement Banks thatparticipatein
the overseas Bank-to-Customer Market under Bond Connect scheme shall fulfill
2. Reporting Contents
The contents of reporting shall include:
the trade date, the name of foreign investor, the name of bondholder(s), country/region
of foreign investor, trading product, trading direction, amount, exchange rate,
purpose/source, transaction type, among other information.
“Purpose/source” indicates whether or not
the FX trade is conducted through Bond Connect; “transaction type” indicates
whether the FX trade is an “initial transaction” or to “reversely closing
position” or an “extension.”
3. Rules for Reporting
Reporting entities shall report the
required information through the information reporting page on the CFETS Post-trade
Processing Platformdaily. The reporting cut-off time is 12:00PM of the next
trading day. All times refer to Beijing time (GMT+8).
1. Bond Connect investors should promptly
inform Primary and General Hong Kong SAR Settlement Banks of their investment
needs behind currency conversion and risk hedging transactions.
2. Primary and General Hong Kong SAR
Settlement Banks shall perform duties of authenticity verification and
monitoring based on the holding information regardingRMB/FX trading of Bond
In the event of conflicts, contradictions, imprecision, mistakes or omissions
between the Chinese version and the English version, the Chinese version shall
prevail as the only version of this Notice.
The English version is for your reference only. In case any discrepancy exists between the Chinese and the English version, the Chinese version shall prevail. CFETS shall not be liable for any losses, damages or any other liabilities suffered or incurred as a result of or in connection with such discrepancy.