CCDC Successfully Held the Third International Pujiang Salon in Shanghai
On November 22, China Central Depository & Clearing Co., Ltd. (CCDC) successfully held the third International Pujiang Salon in Shanghai. Committed to becoming a professional and in-depth exchange platform, this salon focused on both the recently released rules and new areas of business, covering such topics as non-trade transfer via R/QFII and Direct Access scheme, ISIN code application and service optimization, and prospects of overseas investors?nbsp;participation in CIBM repo transactions. Regulators and market participants actively participated in this event, with around 50 attendees from the Macro-prudential Management Bureau of People抯 Bank of China (PBOC), Financial Market Management Department and Open Market Operation Department of PBOC Shanghai Headquarters, as well as more than 30 bond settlement agents, overseas investors and law firms.
In recent years, China has accelerated the opening up of its bond market with various measures. On September 30, PBOC and the State Administration of Foreign Exchange (SAFE) issued the Circular on Matters concerning Further Facilitating Investments by Foreign Institutional Investors in the Interbank Bond Market, allowing non-trade transfer of the same foreign investor between its bond accounts under R/QFII and CIBM Direct scheme, and allowing on-boarding documents to be filed only once for the above two schemes. In order to further facilitate overseas investors?nbsp;investment with this notice, which took effect on November 15, CCDC has formulated implementation rules on the non-trade transfer as a guideline for market participants. Meanwhile, CCDC held this salon to receive market feedback and explore new areas of improvement for better product research.
The salon started with a detailed explanation of the implementation rules on how to apply for non-trade transfer via R/QFII and direct access scheme. Then, experts from CCDC answered several questions raised by bond settlement agents and overseas investors. The salon was then followed by discussions on the prospects of overseas investor抯 participation in CIBM repo tranasctions. Preceding an introduction of the current operating procedures and disposition of collateral after default, lawyers from Clifford Chance first explained the differences and compatibility between NAFMII repo master agreement and the Global Repo Master Agreement (GMRA), and then shared insights on the challenges that overseas investors might encounter in CIBM repo transactions. CCDC later discussed the application and prospection of service optimization of ISIN code in another presentation. All the guests took an active part in the event by giving their feedback and suggestions.
The salon survey shows that attendees were very satisfied with the event as it was well-organized and solved their questions, and more than 90% of them expressed willingness to attend or co-organize follow-up activities. Regulators also believed that this salon was a professional platform for exchanges between regulators and the market. Moreover, participants said this event was a great opportunity to enhance mutual understanding as it made them realize how a balance should be made between risk control and better services when a policy or business rule is designed. In the future, CCDC will continue to keep track of all the feedback received at the salon and explore more cross-border product innovation and optimization.
Held by CCDC, the International Pujiang Salon is a professional platform for in-depth discussions, with each salon focusing on tentative plans, products or market needs of one or several cross-border product lines. Under the guidance of PBOC and other regulators, the salon unleashes inspiration from the market, leads discussions on topics for both domestic and foreign investors, and contributes to the opening-up and development of the Chinese bond market.