The People's Bank of China ("PBC") and the Ministry of Finance ("MOF") have recently released the Interim Administrative Measures for the Issuance of Bonds by Overseas Institutions on the National Interbank Bond Market (the "Measures"), immediately effective from the issue date. Meanwhile, the PBC, in concert with the MOF, the National Development and Reform Commission ("NDRC") and the China Securities Regulatory Commission ("CSRC"), issued the Announcement [2018] No.15, deciding to abolish the Interim Administrative Measures for the Issuance of RMB Bonds by International Development Institutions.
The Measures provide further clarity on the conditions that an overseas institution should meet to issue bonds on the interbank bond market and the application for registration procedures, and provide for information disclosure, issuance registration, custody and clearing, opening of an RMB cash account, redemption of fund, investor protection and other matters. In particular, the Measures stipulate that, A legal-person overseas financial institution shall obtain approval from the PBC for its issuance of bonds on the national interbank bond market. To issue bonds on the said market, an overseas financial institution shall fulfill five requirements, one of which states that "its paid-up capital shall not be lower than CNY10 billion or equivalent amount of another currency".