The People's Bank of China and two other government departments: further support for overseas institutional investors to conduct bond repurchase transactions in the Chinese bond market.

On September 26th, the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly released a notice to support overseas institutional investors engaged in bond repurchase transactions in the Chinese bond market. The notice came into effect on the day of its release, and officials answered questions from reporters regarding the notice. The announcement further meets the liquidity management needs of overseas institutional investors through bond repurchase transactions, promotes the connectivity between onshore and offshore financial markets, and advances the high-level opening-up of the Chinese bond market. After the release of the notice, overseas institutional investors in the interbank bond market could participate in bond repurchase transactions, including all overseas institutional investors entering the market through direct entry or the "Bond Connect" channel. Investor types include overseas central banks or monetary authorities, international financial organizations, sovereign wealth funds, overseas commercial banks, insurance companies, securities firms, fund management companies, futures companies, trust companies, and other financial institutions, as well as pension funds, charitable funds, donation funds, and other long-term institutional investors. Regarding risk prevention, officials mentioned that the notice strengthens the design of overseas institutional investors' bond repurchase transactions in terms of trading, custody, settlement, and exchange, achieves closed-loop fund management, and enhances penetration supervision and monitoring through trade custody data reports. The People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange further support various overseas institutional investors in conducting bond repurchase transactions. This not only helps meet market demands, enhance the attractiveness of RMB bond assets, and optimize the Qualified Foreign Institutional Investor system, but also consolidates and enhances Hong Kong's status as an international financial center, supporting the coordinated development of the onshore and offshore RMB markets. The People's Bank of China has deeply summarized the practice of domestic and foreign repurchase markets, strengthened the connection between the interbank market bond repurchase mechanism and international market practices, and realized the transfer and usability of underlying bonds, providing greater convenience for overseas institutional investors to conduct bond repurchase transactions and promoting the optimization of the domestic bond repurchase mechanism. Next, the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange will continue to implement the overall strategic deployment of the Party Central Committee and the State Council to expand opening to the outside world, adhere to coordinating financial opening and security, work with relevant parties to continuously improve various mechanisms, and steadily promote the high-level institutional opening of the Chinese bond market. The above text is a summary and explanation of the official announcement released by the People's Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange on supporting overseas institutional investors in carrying out bond repurchase transactions.