ANNOUNCEMENT 17 Feb 2016

February 17th, 2016 - The People's Bank of China announced it would be reducing or removing several hurdles that previously made foreign investment in the Chinese interbank market something that was reserved for a select few firms.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

People's Bank of China Financial Market Department, February 17th 2017. (中国人民银行公告〔2016〕第3号)
http://www.pbc.gov.cn/jinrongshichangsi/147160/147171/147358/147400/3021203/index.html

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.

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AFFECTED PRODUCTS

 
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