Shanghai Head Office of the People's Bank of China, Implementing Rules for Administration of the Record Filing of the Investment on the Interbank Bond Market by Foreign Institutional Investors

Main contents: A qualified foreign institutional investor may entrust a settlement agent to apply for investment record filing to the Shanghai Head Office of the People's Bank of China on its behalf. Foreign institutional investors that have already entered the interbank bond market need not carry out record filing again (Article 4).

If the investment principal remitted inward by a foreign institutional investor within nine months from the date on which it completed record filing is less than 50% of its proposed scale of investment placed on the record, it shall be required to submit anew information on its proposed investment scale, etc. If there is a change in the particulars placed on the record by a foreign institutional investor or if a foreign institutional investor withdraws from the interbank bond market, it shall entrust its settlement agent to submit an application and the relevant materials to the Shanghai Head Office of the People's Bank of China (Article 8).

Related legislation: People's Bank of China, Announcement [2016] No.3; and Circular on Foreign Exchange Control Issues Relevant to the Investment on the Interbank Bond Market by Foreign Institutional Investors

Promulgated: May 27 2016

Effective: as of date of promulgation

Applicability: For the purposes of these Rules, the term “foreign institutional investor” means a foreign institutional investor specified in the People's Bank of China, Announcement [2016] No.3.

For the purposes of these Rules, the term “settlement agent” means an interbank market settlement agent that has international settlement business capabilities and is engaged by a foreign institutional investor to conduct bond trading and settlement on its behalf (Article 2).

Main contents: A qualified foreign institutional investor may entrust a settlement agent to apply for investment record filing to the Shanghai Head Office of the People's Bank of China on its behalf. Foreign institutional investors that have already entered the interbank bond market need not carry out record filing again (Article 4).

If the investment principal remitted inward by a foreign institutional investor within nine months from the date on which it completed record filing is less than 50% of its proposed scale of investment placed on the record, it shall be required to submit anew information on its proposed investment scale, etc. If there is a change in the particulars placed on the record by a foreign institutional investor or if a foreign institutional investor withdraws from the interbank bond market, it shall entrust its settlement agent to submit an application and the relevant materials to the Shanghai Head Office of the People's Bank of China (Article 8).

Related legislation: People's Bank of China, Announcement [2016] No.3; and Circular on Foreign Exchange Control Issues Relevant to the Investment on the Interbank Bond Market by Foreign Institutional Investors