By King & Wood Mallesons
KWM has received an overwhelming response to its recent publication “China’s onshore bond market open for business”. Issuers and their advisers have asked several questions to which we provide answers in this supplemental alert.
Which regulators are relevant?
The Chinese bond market comprises two markets: an exchange bond market and the Inter-bank Bond Market. As a general rule, the exchange bond market is regulated by the China Securities Regulatory Commission (“CSRC”) while the Inter-bank Bond Market is regulated by the National Association of Financial Market Institutional Investors (“NAFMII”) under the supervision of the People’s Bank of China (“PBOC”).
Issues of onshore RMB bonds by foreign entities to-date have been primarily undertaken in the Inter-bank Bond Market. In the Inter-bank Bond Market, the PBOC approves the issue of onshore RMB bonds by foreign financial institutions whilst NAFMII (with guidance from the PBOC) approves for registration issues of onshore RMB bonds by sovereign issuers and non-financial enterprises (corporates).
Read full article, please click here.