BOC Consultation on Allowing Transfer of Bonds m88 casino Funds between QFII/RQFII m88 casino CIBM Direct Accounts

On May 10, 2019, the People’s Bank of China (“PBOC”) m88 casino State Administration of Foreign Exchange (“SAFE”) published their joint consultation on the Notice on Issues Related to Further Facilitating Foreign Institutional Investors’ Participation in China Interbank Bond Market (the “Consultation Paper”).

The Cm88 casinosultatim88 casino Paper proposes the following in order to further facilitate China Interbank Bm88 casinod Market (“CIBM”) investments made by foreign institutim88 casinoal investors.

1. A foreign institutim88 casinoal investor can transfer its CIBM bm88 casinods held under either the QFII/RQFII schemes or the CIBM Direct scheme to the other scheme via a nm88 casino-trade transfer.

2. A foreign institutional investor can transfer onshore funds between its QFII/RQFII custodian accounts m88 casino CIBM Direct cash accounts.

3. A foreign institutional investor accessing the CIBM via both QFII/RQFII m88 casino CIBM Direct will only need to file once with the PBOC Shanghai Headquarter, via either its QFII/RQFII custodian bank or the CIBM Direct settlement agent bank.

A foreign institutional investor, through its QFII/RQFII custodian bank or the CIBM Direct settlement agent bank, may (i) make an application for a non-trade transfer of its CIBM bond holdings to China Central Depositary & Clearing Co., Ltd. m88 casino Shanghai Clearing House (collectively the “Clearing Houses”); m88 casino/or (ii) make an application to transfer onshore cash between its QFII/RQFII custodian accounts m88 casino CIBM Direct cash accounts.

The application materials m88 casino detailed procedures for the aforementioned non-trade transfers of bonds shall be subject to the business guidelines issued by the Clearing Houses. When completing the non-trade transfers of bonds or onshore cash transfers on behalf of foreign institutional investors, the relevant QFII/RQFII custodian bank m88 casino CIBM Direct settlement agent bank shall submit a declaration on a virtual basis for the balance of international payments m88 casino receipts in accordance with relevant requirements, m88 casino shall report the information relating to the onshore fund transfers of foreign institutional investors to the RMB Cross-border Payment m88 casino Receipt Management Information System.

The release of the Consultation Paper indicates that the relevant regulators are actively taking into consideration any reasonable suggestions from foreign market participants. The regulators appear to be aiming to resolve some of practical difficulties m88 casino concerns faced by foreign investors as they invest in the onshore bond market, in order to further facilitate investment by foreign institutional investors in the CIBM.