In the News: Bond Market Reforms; Citigroup Fund Custody; and Yum China Offering

Sep 7, 2020
| By Vincent Chow
China issues draft rules easing foreign access to onshore bond markets; Citigroup becomes first U.S. bank to receive fund custody license; and Yum China bags $2.2 billion in Hong Kong secondary offering

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Citibank branch/photo by Brendon Thorne/Bloomberg

China issues draft rules streamlining foreign access to bond market

China has introduced draft rules easing foreign access to its onshore bond market. On Sept. 2, the People’s Bank of China (PBOC), State Administration of Foreign Exchange, and the China Securities Regulatory Commission (CSRC) issued draft rules simplifying application procedures for foreign investors and unifying rules for different investment channels.

According to the joint statement, the proposed rules are designed to make it easier for foreign institutional investors to invest in yuan-denominated bonds. According to the proposed rules, the current single-tier custody system will be replaced by a multitier custody structure whereby foreign investors will no longer have to open trading accounts under their own names but can instead open accounts through mainland custodians. Public comments are being solicited on the draft rules until Oct. 1.

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