National Interbank Funding Center, Rules for the Transfer of Matured and Defaulted Bonds on the Interbank Market

全国银行间同业拆借中心银行间市场到期违约债券转让规则

June 12, 2020 | BY

Susan Mok

Quoting of defaulted bond trading is subject to regulation

Clp Reference: 3700/20.02.13 Promulgated: 2020-02-13
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Issued: February 13, 2020

Applicability: For the purposes of these Rules, the term "matured and defaulted" means that the principal of, or coupon on, a bond cannot be paid punctually and in full on the maturity redemption date specified in the bond offering documents, or that a bond is called early due to a statutory or contractual reason, such as bankruptcy, and the principal of, or coupon on, the bond cannot be paid punctually and in full (Article 2).

Main contents: Qualified investors that are not financial institutions shall participate in transfers of matured and defaulted bonds organized by the National Interbank Funding Center (NIFC) through the Beijing Financial Assets Exchange (the CFAE). Qualified investors that are financial institutions or do not have legal personality that participate in transfers of matured and defaulted bonds organized by the CFAE shall submit their quotes and complete their transactions through the NIFC (Article 5).

clp reference: 3700/20.02.13 issued:2020-02-13

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