Foreign institutions to benefit from interbank bond market

Foreign institutions will be allowed to move funds more easily in the interbank bond market, as part of China's latest efforts to push forward capital account opening and make the renminbi more attractive globally, according to monetary authorities.

A month after removing the annual investment quota restrictions for foreign investors under the Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) regimes, regulators decided to allow foreign institutions to easily transfer funds across different accounts when investing in the interbank bond market.

Foreign institutions can access the domestic interbank bond trading through multiple channels, including QFII, RQFII, direct investment and the bond connect programs. Any fund transaction across the different channels should be via the bond trading procedures as before.