IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 17 Feb 2016 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

In February 2016, the People's Bank of China (PBoC) revealed that it would further decrease controls on allowing 'foreign institutional investors' to invest in the Chinese interbank bond market. The restrictions were relaxed in three main ways.

Firstly, the scope of firms allowed to invest has been broadened. Previously, only a few specific types of foreign institutions were permitted to invest, mainly state banks and large international organisations. After this announcement, the list will be expanded to include 'commercial banks, insurance companies, securities firms, fund management companies and other asset management institutions'.

Secondly, qualifying investment institutions are now free from investment quotas that were previously applied to most investors, except few key entities.

Finally, all investors can now begin each investment after filing for approval through the PBoC, whereas before prior approval was needed on a case-by-case basis for most.

In addition, several other smaller changes were made to overall make the process of investing in the Chinese interbank bond market both more accessible and easier for foreign investors.

The changes came into effect upon promulgation of the announcement.

AFFECTED COUNTRIES

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