China: China Interbank Bond Market - New service
Clearstream Banking1 would like to inform customers that, effective
17 October 2016
customers will be able to settle and safekeep China securities listed in the China Interbank Bond Market (CIBM) via Clearstream Banking’s China Bond Link. Customers will have access to the third largest bond market worldwide without quota limitations. Clearstream Banking will assist customers to register with the People’s Bank of China (PBOC) and to open a direct account with the local regulator and clearing houses through Clearstream Banking's appointed local settlement agent.
Since July 2015, the Chinese government has been simplifying the access to the CIBM for foreign investors and has expanded the qualified investor types earlier this year. Currently, there are two types of eligible investors: the Central Banks2 type investors and the Overseas Institutional3 type investors. This progress facilitates in the opening up of the China Bond market for foreign investors and goes hand-in-hand with the Chinese government’s approach to establish the Renminbi as an international currency and to liberalise its financial market.
The launch of Clearstream Banking’s China Bond Link coincides with the official inclusion of the RMB in the IMF’s Special Drawing Rights (SDR) reserve currency basket and is part of Clearstream Banking’s ongoing commitment to provide our international customers with enhanced access to the Chinese market. Customers will benefit from our ICSD custody and connectivity infrastructure as well as our standard suite of value-added services, including corporate action processing and reporting. This initiative further complements our existing services for Chinese A-shares (via Shanghai-Hong Kong Stock Connect) and B-shares that are listed on the mainland stock exchanges.
Impact on customers
To participate in the CIBM, customers must open:
- a new Clearstream Banking account;
- a Basic account (if applicable) and a Special account with People's Bank of China (PBOC);
- an account with Shanghai Clearing House (SCH);
- an account with the China Central Depository & Clearing Co., Ltd (CDCC); and
- an account with China Foreign Exchange Trade (CFETS).
Clearstream Banking will be the point of contact and will support customers in the account opening4 process.
The against payment settlement instruction deadlines will be as follows:
Central European Summer Time (CEST)
Instruction | Deadline from 17 October 2016 |
Receipts/Deliveries against payment | 07:55 SD |
China Standard Time (CST)
Instruction | Deadline from 17 October 2016 |
Receipts/Deliveries against payment | 13:55 SD |
The CIBM cash account instruction deadlines will be as follows:
Central European Summer Time (CEST)
Instruction | Deadline from 17 October 2016 |
Cash Pre-advice5/Repatriation | 03:30 SD |
China Standard Time (CST)
Instruction | Deadline from 17 October 2016 |
Cash Pre-advice5/Repatriation | 09:30 SD |
Further information
The Creation Link Guide - China and related documentation will be updated in due course.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for CBF customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
2. Foreign Central Banks, Monetary Authorities, International Financial Organisations and Sovereign Wealth Funds.
3. Commercial banks, insurance companies, securities companies, fund management companies and other asset management institutions;
Investment products lawfully launched by the aforesaid institutions;
Other mid-term and long-term institutional investors such as pension funds, charity funds and endowment funds etc.
4. The accounts will be opened on a segregated level and in the name of the final beneficiary owner.
5. Customers need to ensure onshore RMB funds are received at the China onshore account before 08:00 CEST/14:00 CST.