Last updated at: (Beijing Time) Thursday, April 04, 2002
Central Bank and Ministry of Finance Promulgate T-Bond Counter Deals
The People's Bank of China and the Ministry of Finance jointly promulgated today their regulations on "Book-entry T-bond Deals Management" in the way investors are to be formally provided with services for T-bond transactions at all times over the counter of the whole financial setup of the Commercial Bank.
The People's Bank of China and the Ministry of Finance jointly promulgated today their regulations on "Book-entry T-bond Deals Management" in the way investors are to be formally provided with services for T-bond transactions at all times over the counter of the whole financial setup of the Commercial Bank.
Customarily, investors in China are having following channels for buying T-bonds. One is investors buying voucher T-bonds over the counter of the Commercial Bank. Two, individual and enterprise investors buy book-entry T-bonds from stock exchanges. Three, financial institutions like Commercial Bank buy book-entry T-bonds from bond markets between banks.
But to go in for T-bond deals at exchanges must have security accounts. Inter-bank bond markets are opened merely to financial institutions. To meet the demand of individual and enterprise investors for book-entry T-bonds, since the 4th quarter 2000, the People's Bank of China and the Ministry of Finance had set about organizing the work experimenting on book-entry T-bond over-counter deals.
Acting on the regulations promulgated on "Book-entry T-bond Deals Management", book-entry financial institutions conducting book-entry T-bond deals must be those run with expertise, qualified personnel, claiming two to three years of good standing marred by no violations of inter-bank bond market discipline.