ANNOUNCED AS TEMPORARYNo
Controls on commercial transactions and investment instruments
On the 14th of July 2015, the People's Bank of China released a circular, informing of the relaxation of restrictions on investments by foreign entities in the interbank bonds market.
The controls were relaxed in three main ways:
Foreign central banks, international financial organisations and sovereign wealth funds would no longer have to wait for prior approval through a lengthy process for each investment. Only a short filing form is now necessary, and investments can go ahead as soon as this is filed. Other types of institution must still go through the old process, however;
Quota restrictions were also removed for the abovementioned types of organisations;
The investment scope is broadened to trading forward contracts, interest rate swaps, and bond repurchases.
The changes came into effect upon the promulgation of the announcement.
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