got problem--> --> -->
Login Subscribe

CCB’s innovation in bond underwriting business helps open up China’s financial markets

China’s bond market has become one of the largest and most important investment destinations in the world, but foreign investor participation remains relatively low. More innovations are expected in the bond market after the Chinese regulators issued new rules for foreign institutional investors.

January 11, 2023 | Ruoxin Qi
  • CCB introduced cross-border bond innovations to attract more foreign investors to the Chinese market
  • Proprietary Global DCM Access system enables real-time exchange of cross-border investment information in the debt capital market 
  • CCB optimised its cross-border bond business process through digitalisation  

On 18 November 2022, the People’s Bank of China (PBoC) and the State Administration of Foreign Exchange (SAFE) issued “The Provisions on the Administration of Funds of Foreign Institutional Investors Investing in the Chinese Bond Market”. It clarifies the requirements for the administration of funds of foreign institutional investors. China Construction Bank (CCB) aims to leverage the market-opening policies to introduce product and service innovations to attract more foreign investors.

As of 31 July 2022, the total size of China’s bond market reached $21 trillion (RMB 147 trillion), making it one of the most important markets for cross-border bond investment. Foreign investment in China’s bond market, however, makes up only 3% of the total and is mostly in government bonds and policy-bank bonds. According to ChinaBond.com, as of October 2022, foreign institutions hold 9.4% of government bonds and 3.6% of policy lender bonds and have limited investment in regional government bonds (0.03%), commercial bank bonds (0.43%), corporate bonds (0.12%), credit asset-backed bonds (0.90%) and other varieties. There is still plenty of room for improvement in the openness of China’s bond market, and more innovations are expected to attract investments from overseas.  

Deepening China’s bond market not only serves the...

Please login to read the complete article. If you already have an account, you can login now or subscribe/register.

Categories:

Keywords:CCB, PBoC, ESG, Bond Market, Cross-border Bond Investment, RMB, Global Dcm Access


 





Comments (0)

Peter G. Zhang's Books
The Chinese Yuan: Internationalization and Financial Products in China (Wiley Finance)
Date: Feb 22, 2011
Chinese Yuan (Renminbi): Derivative Products
Date: Oct 12, 2004
Exotic Options: A Guide to Second Generation Options
Date: Aug 1, 1998
Barings Bankruptcy and Financial Derivatives
Date: Aug, 1995
Recent Speeches
  • Financial Market Development in the Process of Rmb Internationalisation - April 8, 2011
  • Managing the risks of Rmb cross-border transactions - February 10, 2011
  • Why Hong Kong and the mainland will benefit from Rmb Internationalisation - January 12, 2011