Bonds have gradually increased the transfer of trading activity in the past five years, and there is still much room for growth in the allocation of RMB bonds for overseas investors

2Jul

Wen | Liu Qi

On July 3, 2017, the bond "north direction" was officially launched, and now the fifth anniversary is about to usher in. During this period, the bond "south direction" was launched on September 24, 2021, marking the "two -way" of bonds. On the occasion of the fifth anniversary of the bond pass, the "Related Matters Related to Further Investment in the Chinese Bond Market" will be implemented from June 30th. Overseas institutional investors who have been allowed to enter the interbank bond market can invest directly or through interconnection. On the exchange of the exchange bond market, my country's bond market has taken another important step to the outside world. It is worth mentioning that on July 1st, the China Foreign Exchange Trading Center announced that in order to reduce the investment cost of overseas investors, the bond company will reduce the service fee on July 11, and the cost reduction will reach 25%. Analysts interviewed by a reporter from the Securities Daily said that the bonds opened a new channel for overseas investors to invest in the domestic bond market, which is an important milestone in the domestic bond market to open to the outside world and the internationalization of the RMB. In the future, overseas investors will still have great growth potential and growth space for the allocation of RMB bonds. The rapid growth of the investment scale was opened on July 3, 2017. Overseas institutions can pass through the "one -point access" mainland bond market through Hong Kong, China; Provide a convenient channel for investment in Hong Kong and the global bond market for mainland institutional investors. Zhou Maohua, a macro researcher at the Everbright Bank Financial Market Department, told a reporter from the Securities Daily that bonds are an important mechanism for the opening of my country's financial industry to the outside world. Hong Kong's position as a global financial center; Bondon provides global investors with a choice of diversified asset allocation to allow global investors to share my country's economic development dividends; ability. In the five years since the opening of bonds, the scale of foreign institutions has invested rapidly in the domestic bond market. At the same time, the activity of bonds has gradually increased. Become an important channel for international investors to invest in the domestic bond market. Yu Lifeng, a senior analyst at the Ministry of East Jincheng Research and Development Department, said in an interview with the Securities Daily that bonds have improved the efficiency of overseas institutions to invest in the domestic bond market and are welcomed by international investors. Compared with the settlement agent model and QFII model of foreign institutions to invest in the domestic bond market, bond access to the market is more convenient, and its multi -level custody model is more in line with international practice. Overseas institutions can pass the central settlement of the debt instrument of the Hong Kong HKMA. The system (CMU system) directly connects to the interbank bond market in the Mainland. After the opening of the bonds, the trading rules have been continuously improved. In 2018, the bonds were fully realized to fully realize the functions of real -time bond payment and online transaction division. The degree and transaction efficiency are continuously improved. According to the latest data from Bond Tong Company, as of the end of May this year, Bond Tong brought together 3,513 overseas institutional investors (accounts) from 36 countries and regions around the world. 78 of the top 100 asset management companies in the world completed bonds. Tong's filing enters the market. "In the past five years, the rules of bonds have continued to optimize the rules of the record, custody, transaction, settlement mechanism, and other infrastructure levels, and the rules of transaction have been continuously in line with international standards. The degree of convenience of overseas institutions has gradually increased. The bond index has been incorporated into China Treasury bonds, and the pace of RMB assets into the international financial system has been accelerated. "Yu Lifeng said. In the future, the huge potential of development has made positive progress in the high -quality and two -way opening of my country's bond market. Overseas institutions have been continuously improved through various policies for investing in the Chinese bond market through direct access to market channels, the scope and investment varieties are continuously expanded, and the management methods are more market -oriented. It is worth mentioning that at the fifth anniversary of the bond operation, according to the arrangement of "Further facilitating the incident of investors investing in the Chinese bond market", foreign institutional investors who have been allowed to enter the interbank bond market will be allowed to enter the interbank bond market. It can invest directly or to invest in the exchange market through interconnection. Yu Lifeng believes that after foreign institutional investors are allowed to participate in the exchange bond market, the scale and proportion of bonds held by the exchange market will gradually increase. In addition, attracting more international investors investment exchange bond markets is also conducive to enriching the type of investor market for exchanges, diversified funds, and improving the liquidity and stability of the market. "Earlier, overseas institutions entered the exchange market through QFII and RQFII, and bonds and the direct investment model (CIBM) ​​channels of bonds and China Banking Bond market can only invest in bonds between banks. After this document is issued, bonds and CIBM channels Investors can directly invest in the exchange market or through the interconnection between the two markets, and indirect investment in the exchange market. "Yu Lifeng said that this is mainly to facilitate institutions that can only enter the domestic bond market through bonds and CIBM channels to enter the domestic bond market. Investment exchanges, such as foreign central banks, sovereign funds, banks and insurance companies.

According to data previously released by the People's Bank of China, as of the end of April 2022, the balance of the Chinese bond market was 13.82 trillion yuan. Since 2016, it has ranked second in the world. The scale of debt holdings was 3.9 trillion yuan, an increase of 225%over the end of 2017. In Zhou Maohua's view, my country's bond market will still have huge development potential in the future, which will further attract foreign investment. This is mainly based on some points: my country has continued to deepen supply -side structural reforms, and economic development has been better for a long time; my country has steadily promoted high -level opening to the outside world, which will facilitate global investors to participate in my country's bond market; Moreover, the RMB bond yield and the relatively stable currency value help enrich the global investor asset portfolio, and has important risk dispersion value. "In the future, the growth potential and growth space for overseas investors to allocate RMB bonds is still great." Yu Lifeng said that at present, the proportion of RMB bonds in global asset allocation is relatively low, far lower than that of developed countries and major emerging markets. It does not match my country's economic volume and the proportion of international trade. With the further improvement of China's importance in the global economy, the continuous improvement of financial infrastructure, and the further opening up of the bond market, the continuous increase of foreign investment in the proportion of RMB bonds is the general trend. Moreover, the central bank's demand for renminbi still has room for further improvement. In addition, RMB bonds are still in the initial stage of foreign capital inflows. The main foreign capital holding interest rate bonds and interbank deposits. In the future, with the further improvement of the domestic credit bond market infrastructure, foreign investment will also be enriched. It will expand accordingly. Recommended reading

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Picture ｜ Production of Cui Jianqi of Securities Daily | Zhang Xin

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