ANNOUNCEMENT 14 Jul 2015

July 14th, 2015 - The People's Bank of China announced that it would ease restrictions on investing in the Chinese interbank bonds market.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

People's Bank of China, July 14th 2015. (中国人民银行关于境外央行、国际金融组织、主权财富基金 运用人民币投资银行间市场有关事宜的通知)
http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/2813723/index.html

Inception date: 14 Jul 2015 | Removal date: open ended
Still in force

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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