China Drafts New Rules to Promote Bond Investments by Foreign Investors

May 22, 2019 | BY

Marilyn Romero

The People's Bank of China and State Administration of Foreign Exchange have issued draft rules that will allow foreign investors to switch bond investments between China's foreign investment channels.

China, in response to demand from the international investment community, has issued draft rules that will allow foreign investors to switch investments between the China interbank bond market scheme, known as CIBM Direct, and the older Qualified Foreign Institutional Investor, or QFII, program.

The country's People's Bank of China, or the PBOC, and State Administration of Foreign Exchange, or SAFE, have issued draft guidelines that will govern how foreign investors will be able to switch bonds between these schemes, something that was not possible in the past.

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