China to further open bond market for foreign institutional investors

China said on Friday that it would further facilitate foreign institutional investments in its bond market and coordinate the opening-up of the interbank and exchange bond markets.

The country aims to increase the diversity of investors, while improving the liquidity and stability of its bond market, according to a statement jointly issued by the central bank and top securities and foreign exchange regulators.

Measures will be taken to support qualified overseas institutional investors in investing directly or through connectivity in the exchange bond market, and in independently choosing trading venues.

"The investment procedures will be simplified, and market access will be extended to the exchange bond market," said an official with the People's Bank of China, adding that foreign institutional investors will enter the market as legal persons.

The statement will come into effect from June 30, 2022.

The central bank and the foreign-exchange regulator will issue regulations on fund management, unify cross-border fund administration and make clarifications in terms of registration, fund exchange, cross-border income and expenses, and foreign-exchange hedging.