Foreign “Buy Buy” Increased Holding of Chinese Bonds for 10 Consecutive Months

Foreign “Buy Buy” Increased Holding of Chinese Bonds for 10 Consecutive Months

Source: Securities Daily’s moderator Liu Weijie: On October 11, the Securities and Futures Commission said at a press conference that starting from April 1, 2020, the restrictions on foreign investment ratios of fund management companies will be lifted nationwide; since December 1, 2020From now on, the restrictions on foreign shares of securities companies will be lifted nationwide.

The voucher regulator was originally scheduled to cancel the restrictions on foreign exchange ratios of securities companies, fund 重庆耍耍网 management companies and futures companies in 2021 to 2020, which ushered in a new stage for the opening up of securities, securities, fund and futures industries.

Yes, this newspaper interviewed preliminary experts for in-depth interpretation and analysis.

  Our reporter Bao Xing’an Foreign Ministry has always shown continuous enthusiasm for investing in RMB bonds.

The data on the September bond escrow of CCDC announced that as of the end of September this year, the scale of bonds held by overseas institutions in CCDC has reached 17,945.

$ 4.5 billion, a net increase of 706.

7.1 billion yuan, an increase of 454 over August.

US $ 1.7 billion, the 10th consecutive month that foreign countries have increased their holdings of Chinese bonds.

  In addition, the latest data released by the China Foreign Exchange Trading Center shows that in September, foreign institutional investors made a net purchase of US $ 110.8 billion in the internal interbank bond market, a significant increase of 59% from the previous month.In the inter-bank bond market, net purchases of 321.1 billion yuan of bonds were due to net purchases of approximately 500 billion yuan in the first half of the year, and net purchases in the first three quarters exceeded 800 billion yuan.

  Some experts believe that the reopening of the restructured bond market continues to accelerate, coupled with the increased attractiveness of other bond markets, more overseas funds will invest in the bond market.

  The bond market opened up to a new level On October 11, the SFC meeting stated at a regular press conference that it would advance the time limit for a large number of shares of securities companies, fund management companies and futures companies to be 2020, which was originally scheduled to be lifted in 2021.year.

  Fu Yifu, a senior official of the Suning Institute of Finance, told a reporter of the Securities Daily that historically, the restrictions on foreign exchange shareholding ratios have been a hindrance to the opening of the bond market.The market and the entire financial industry have accelerated their opening to the outside world, taking another substantial step, which means that the era of substantial participation of foreign capital institutions in the internal capital market has officially come.

  Fu Yifu believes that, in particular, the lifting of the restrictions on foreign exchange ratios of securities companies will gradually transform into a diversified market body in the bond market, improve the liquidity of the bond market, consolidate the interest rate pricing basis of the bond market, and promote international competition in the bond market.Promotion.

  The opening of the exchange bond market has reached a new level.

Hang Seng Bank (China) Co., Ltd. recently announced that it has completed the preparations for entering the domestic stock exchange bond market, becoming the first foreign exchange bank to enter the stock exchange to participate in bond trading.

Hang Seng China can participate in the auction of spot bonds on the Shanghai and Shenzhen Stock Exchanges at the same time. The transaction types include interest rate bonds, financial bonds, and publicly issued corporate bonds.

  Wu Yingmin, head of Hang Seng China Global Markets business, said that expanding the scope of banks participating in the bond exchange bond market is an important step to promote the development of the yield bond market.

This expansion has expanded the investment scope of banks, expanded the financing channels for expanding the real economy, reduced corporate financing costs, and enhanced the ability of financial services to the real economy.

  At present, the scope of banks participating in bond trading on the stock exchange has expanded from a small number of locally listed commercial banks in the previous pilot to policy banks and China Development Bank, large domestic commercial banks, joint-stock commercial banks, city commercial banks, foreign banks in China, and domestic listings.Other banks.

  Fu Yifu said that expanding the channels for foreign institutional investors to enter the exchange bond market, improving and optimizing the structure of investors, and diversifying the source of funds.

  The opening of the interbank bond market has been further advanced.

Recently, the China Association of Interbank Market Dealers (hereinafter referred to as the Association) issued an announcement to start foreign bank members to participate in the market assessment of Class A underwriting business and issued detailed scoring standards.

On the evening of September 2nd, the Association issued an announcement approving Deutsche Bank (China) Co., Ltd. and BNP Paribas (China) Co., Ltd. to carry out a type A lead underwriting business of non-financial corporate debt financing instruments.

After the merger, the three departments including the National Interbank Funding Center issued a notice recently to extend the settlement cycle of bond transactions by overseas institutional investors and increase the bond T-plus settlement.

  Some experts have analyzed that this is a major expansion of the opening up of the national bond market. The realization of Class A lead underwriting licenses through swap institutions and the enhanced transfer of information on newly issued bonds can further enrich the means for institutions to serve the domestic real economy.Enhance the breadth and depth of their participation in the economic development of developing countries.

  At the same time, the pace of existing international indexes is accelerating, and the pace of China’s bonds being divided into three major international indexes is constantly accelerating.

According to the expansion of Huatai Securities’ Zhang Jiqiang team, the size of foreign exchange inflows of Chinese bonds after the three major international bond indexes is expected to reach US $ 190 billion.

  Bloomberg officially announced on April 1 that RMB-denominated Chinese government bonds and policy bank bonds will be changed to the Bloomberg Barclays Global Composite Index, which will be completed step by step within 20 months.

A total of more than 350 Chinese bonds have been divided by the index. After full repetition, RMB bond assets will account for 6 of the total market value of the index.

At 06%, RMB-denominated Chinese bonds will become the fourth-largest denominated currency bond after the US dollar, euro, and yen.

  JP Morgan Chase announced on September 4 that RMB-denominated high-liquidity Chinese government bonds expired on February 28, 2020 and will be replaced by its flagship global emerging market government bond index series, which will be completed step by step within 10 months.

This series of indices track the size of the funds at approximately $ 226 billion.

  Another major company, FTSE Russell, has included the Chinese bond market in its emerging market Treasury Bond Index, the Asian Treasury Bond Index and the Asia Pacific Treasury Bond Index, but has not yet swapped its flagship index (WGBI).

The index tracks the size of funds from about $ 2 trillion to $ 4 trillion. If successfully divided, the weight of Chinese government bonds will reach 5% to 6%.

  Fu Yifu said that foreign investment in the Chinese bond market is equivalent to transferring global funds for the domestic bond market, which is conducive to the capital supply of the bond market, and diversified market entities can also solve the problem of improving the liquidity of the bond market and consolidating the basis of interest rate pricing.Robes are constantly improving their competitiveness.

  Industry experts believe that the biggest significance of joining the international 深圳桑拿网 index is to announce to the world that China’s bond market infrastructure, foreign exchange hedging tool supply, and capital account exchange have met international standards, and China is no longer a “marginal market” for affluent entry.