Announcement of the People's Bank of China [2016] No.3
Announcement of the People's Bank of China [2016] No.3
Announcement of the People's Bank of China [2016] No.3
February 17, 2016
With a view to promoting the opening-up of the interbank bond market, and facilitating lawful investment by eligible foreign institutional investors in the interbank bond market, the relevant requirements on further improving the investments by foreign institutional investors in the interbank bond market are announced as follows:
I. "Foreign institutional investors" or "FIIs", as used herein, refers to financial institutions such as commercial banks, insurance companies, securities companies, fund management companies and other asset management institutions lawfully registered and incorporated outside the People's Republic of China, as well as investment products lawfully launched by such financial institutions and other long- and medium-term institutional investors recognized by the People's Bank of China ("PBOC"), such as pension funds, charity funds and endowment funds, in accordance with the requirements of this Announcement.
II. FIIs investing in the interbank bond market shall meet the following requirements:
(I) being incorporated pursuant to the laws of the countries or regions where they are located;
(II) having a sound governing structure, well-established internal control system, and standardized business operations, without significant violations or irregularities in bond investment that led to punishment by the regulatory bodies in the last three years;
(III) having lawful funding sources;
(IV) having corresponding risk recognition and risk bearing capabilities, knowing and independently bearing risks in bond investment; and
(V) other requirements as prescribed by the PBOC.
III. The PBOC encourages FIIs to invest in the interbank bond market as long-and medium-term investors, and exercise macro-prudential management over the investment behaviors of FIIs. FIIs may deal with related fund remittance in accordance with the regulations on foreign exchange administration.
IV.
......
February 17, 2016
With a view to promoting the opening-up of the interbank bond market, and facilitating lawful investment by eligible foreign institutional investors in the interbank bond market, the relevant requirements on further improving the investments by foreign institutional investors in the interbank bond market are announced as follows:
I. "Foreign institutional investors" or "FIIs", as used herein, refers to financial institutions such as commercial banks, insurance companies, securities companies, fund management companies and other asset management institutions lawfully registered and incorporated outside the People's Republic of China, as well as investment products lawfully launched by such financial institutions and other long- and medium-term institutional investors recognized by the People's Bank of China ("PBOC"), such as pension funds, charity funds and endowment funds, in accordance with the requirements of this Announcement.
II. FIIs investing in the interbank bond market shall meet the following requirements:
(I) being incorporated pursuant to the laws of the countries or regions where they are located;
(II) having a sound governing structure, well-established internal control system, and standardized business operations, without significant violations or irregularities in bond investment that led to punishment by the regulatory bodies in the last three years;
(III) having lawful funding sources;
(IV) having corresponding risk recognition and risk bearing capabilities, knowing and independently bearing risks in bond investment; and
(V) other requirements as prescribed by the PBOC.
III. The PBOC encourages FIIs to invest in the interbank bond market as long-and medium-term investors, and exercise macro-prudential management over the investment behaviors of FIIs. FIIs may deal with related fund remittance in accordance with the regulations on foreign exchange administration.
IV.
......