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
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)
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.