China Interbank Market Widens Access to Overseas Participants

 

On 14 July 2015, the People’s Bank of China opened the door to central banks and monetary authorities from various jurisdictions, international financial organisations and foreign sovereign wealth funds to enter into bond repurchase transactions as well as certain derivative transactions in the rapidly growing China inter-bank market. Previously on 28 May 2015, PBOC had issued a separate circular which enabled offshore RMB clearing banks and offshore RMB participating banks to carry out bond repurchase transactions on the Inter-bank Market.

With the now-permitted entry of certain overseas institutions into the Inter-bank Market repo and derivative business comes certain new legal and documentation issues.

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Related Articles 

  • For further details on the main provisions, execution, net settlement practice and other key features of NAFMII Repo Agreement, please click here
  • For further information on the NAFMII Derivatives Agreement and a more detailed analysis of the documentation structure, please click here