The China Central Depository and Clearing Co., Ltd. ("CCDC") has recently issued the Circular on Adjusting Matters Concerning the Period of Outright Repo (the "Circular").
The Circular states that, under relevant requirements set out in the Circular of the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission on Regulating the Bond Transaction Business of Players in the Bond Market (Yin Fa [2017] No.302), from May 21, 2018, clearing members, while handling the outright repo business, may select the period of repo of up to 365 days. Other matters relating to the clearing business for the outright repo may be handled with reference to the Detailed Operating Rules of the China Central Depository and Clearing Co., Ltd. on the Clearing Business for Bond Outright Repo Transactions.