Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
[Lexis China Comments]
Pursuant to the Decision of the People's Bank of China on Amending Certain Rules (Order of the People's Bank of China [2026] No. 4), this document has been amended.
Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
Order of the People's Bank of China [2005] No. 1
April 27, 2005
With a view to promoting the bond market, regulating the acts of issuance of financial bonds and protecting the legitimate rights and interests of the investors, the People's Bank of China has formulated the Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market. The Measures were adopted at the fifth executive meeting of governors on April 22, 2005, and are herby promulgated and shall be implemented as of June 1, 2005.
Zhou Xiaochuan, President
Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
Chapter I General Provisions
Article 1 With a view to regulating the acts of issuing financial bonds in the National Inter-bank Bond Market and protecting the legitimate rights and interests of the investors, these Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China (Revised in 2003) .
Article 2 The term "financial bond" mentioned in these Measures refers to the negotiable instruments issued by a legal-person financial institution established within the territory of the People's Republic of China in the National Inter-bank Bond Market for the purpose of guaranteeing the payment of the principal plus interest agreed by the parties concerned.
The term "legal-person financial institution" mentioned in these Measures includes policy banks, commercial banks, finance companies of enterprise groups, as well as other financial institutions.
Article 3 The People's Bank of China (hereinafter referred to as "PBOC") shall be responsible for the regulatory administration over the issuance of financial bonds. Without approval of PBOC, no financial institution may issue any financial bond.
Article 4 The principle of fairness, impartiality, good faith and self-discipline shall be followed in the issuance of financial bonds. The Issuers of financial bonds (hereinafter referred to as the "Issuers") and relevant intermediary institutions shall fully disclose the pertinent information and remind the investors of the investment risks.
Article 5 An investor shall bear the financial bond investment risks by himself.
Chapter II Application and Approval
Article 6 Where a policy bank intends to issue a financial bond, it shall submit to PBOC an application on a yearly basis for the issuance of a financial bond. It shall not issue the financial bond until it has obtained the approval of PBOC. The application for the issuance of the financial bond of a policy bank shall include the volume of issuance, schedule of issuance, way of issuance, etc.. If any modification needs to be made, it shall be timely reported to PBOC for approval.
The term "policy bank" mentioned in these Measures refers to the State Development Bank of China, China Import and Export Bank and China Agriculture Development Bank.
Article 7 A commercial bank shall meet the following conditions for issuing a financial bond:
1. Having a sound corporate governance mechanism;
2. Its core capital adequacy ratio being no less than 4 %;
3. Having a favorable balance for three consecutive years;
4. Having adequate reserves for loan losses;
5. Its risk control indicators conforming to relevant provisions of the regulatory institution;
6. Having no record of serious violation of any law or regulation during the recent 3 years; and
7. Other conditions prescribed by PBOC.
Upon the application of a commercial bank, PBOC may exempt the commercial bank from one or more conditions mentioned in the preceding paragraph.
Article 8 An enterprise group finance company shall meet the following conditions for issuing a financial bond:
1.
......
Pursuant to the Decision of the People's Bank of China on Amending Certain Rules (Order of the People's Bank of China [2026] No. 4), this document has been amended.
Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
Order of the People's Bank of China [2005] No. 1
April 27, 2005
With a view to promoting the bond market, regulating the acts of issuance of financial bonds and protecting the legitimate rights and interests of the investors, the People's Bank of China has formulated the Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market. The Measures were adopted at the fifth executive meeting of governors on April 22, 2005, and are herby promulgated and shall be implemented as of June 1, 2005.
Zhou Xiaochuan, President
Administrative Measures for the Issuance of Financial Bonds in the National Inter-bank Bond Market
Chapter I General Provisions
Article 1 With a view to regulating the acts of issuing financial bonds in the National Inter-bank Bond Market and protecting the legitimate rights and interests of the investors, these Measures are formulated in accordance with the Law of the People's Republic of China on the People's Bank of China (Revised in 2003) .
Article 2 The term "financial bond" mentioned in these Measures refers to the negotiable instruments issued by a legal-person financial institution established within the territory of the People's Republic of China in the National Inter-bank Bond Market for the purpose of guaranteeing the payment of the principal plus interest agreed by the parties concerned.
The term "legal-person financial institution" mentioned in these Measures includes policy banks, commercial banks, finance companies of enterprise groups, as well as other financial institutions.
Article 3 The People's Bank of China (hereinafter referred to as "PBOC") shall be responsible for the regulatory administration over the issuance of financial bonds. Without approval of PBOC, no financial institution may issue any financial bond.
Article 4 The principle of fairness, impartiality, good faith and self-discipline shall be followed in the issuance of financial bonds. The Issuers of financial bonds (hereinafter referred to as the "Issuers") and relevant intermediary institutions shall fully disclose the pertinent information and remind the investors of the investment risks.
Article 5 An investor shall bear the financial bond investment risks by himself.
Chapter II Application and Approval
Article 6 Where a policy bank intends to issue a financial bond, it shall submit to PBOC an application on a yearly basis for the issuance of a financial bond. It shall not issue the financial bond until it has obtained the approval of PBOC. The application for the issuance of the financial bond of a policy bank shall include the volume of issuance, schedule of issuance, way of issuance, etc.. If any modification needs to be made, it shall be timely reported to PBOC for approval.
The term "policy bank" mentioned in these Measures refers to the State Development Bank of China, China Import and Export Bank and China Agriculture Development Bank.
Article 7 A commercial bank shall meet the following conditions for issuing a financial bond:
1. Having a sound corporate governance mechanism;
2. Its core capital adequacy ratio being no less than 4 %;
3. Having a favorable balance for three consecutive years;
4. Having adequate reserves for loan losses;
5. Its risk control indicators conforming to relevant provisions of the regulatory institution;
6. Having no record of serious violation of any law or regulation during the recent 3 years; and
7. Other conditions prescribed by PBOC.
Upon the application of a commercial bank, PBOC may exempt the commercial bank from one or more conditions mentioned in the preceding paragraph.
Article 8 An enterprise group finance company shall meet the following conditions for issuing a financial bond:
1.
......