People's Bank of China, Circular on Matters Relevant to the Pilot Project for Investment in the Interbank Bond Market with Renminbi by Three Types of Organisations Such as Overseas Renminbi Clearing Banks

Issued: August 16 2010
Effective: as of date of issuance

Applicability: The term “three types of organisations such as overseas renminbi clearing banks” (Overseas Organisations) refers to overseas central banks or monetary authorities, renminbi (Rmb) clearing banks in Hong Kong and Macao, and overseas banks participating in cross-border trade settlements in Rmb (Article 1).

Main contents: The Rmb funds used by Overseas Organisations for investment in the interbank bond market shall be the Rmb funds derived from monetary cooperation between central banks, cross-border trade and Rmb investment in accordance with the relevant provisions (Article 2). Overseas Organisations may not conduct bond transactions with their affiliated enterprises such as their parent company or other subsidiaries (branch organisations) under the same parent company (Article 7).