In order to
further facilitate the investment of overseas institutions in RMB bonds and
better implement the relevant work arrangements of the People's Bank of China for
the expansion of the opening up of the financial market as well as the
"Thirty Articles of Shanghai Financial Development", the National
Interbank Funding Center (hereinafter referred to as CFETS) has been actively
co-operating with settlement agent banks, market makers and overseas
third-party platforms, and started the trial operation of direct trading
service under CIBM Direct (CIBM Direct Trading Service) from today.
Direct Trading Service, offshore institutional investors under the direct
investment mode can directly send requests for quotation to onshore market makers
and complete cash bond trading. Additionally, they can also leverage various RFQ protocols such as trade allocation and list
trading, which further improves the efficiency of investing and trading in RMB bonds.Drawing
on the experience of Bond Connect, this service enable soffshore institutional
investors to request for quotes and transact with onshore market makers using
conventional trading platforms via the link between the system of CFETS and
overseas trading platforms. This service adopts the "Dealer Pay"
model in alignment with current global practice.Tradeweb and Bloomberg have now
partnered with CFETS to offer CIBM Direct Trading Service to foreign investors.
first day of the trial operation, a number of overseas institutions completed
cash bond trading through this service and experienced the efficiency and
convenience of direct trading, providing good user feedback.Among them, AllianceBernstein
LP, UBS Asset Management, PIMCO,Standard Chartered Hong Kong, HSBC Hong Kong, ICBC
(Macau), CITIC Bank International, ICBC (Dubai) and other overseas investors have
completed the first batch of 17 transactions,with the amount of 560
million yuan in total,with ICBC, ABC, CCB, Bank of Communications, CITIC Bank,
HSBC China, Standard Chartered China, CITIC Securities, Guotai Junan
Securities,Orient Securitiesand other onshore market makers through this
service.As settlement agents, ICBC, HSBC China, Standard Chartered China and CITIC
Banktake the lead in supporting overseas clients to carry out direct trading
and providing settlement services.
In the next
step, as an important infrastructure of the interbank bond market, CFETS will
continue to co-operate with all market players under the guidance of the
People's Bank of China, continuously improve the convenience for overseas
institutional investors to invest in RMB bonds, and promote the high-quality
opening up of China's bond market.