Circular of the State Administration of Foreign Exchange on Issues concerning Improving the Management of Foreign Exchange Risks Associated with Foreign Institutional Investors Investing in the Interbank Bond Market
Circular of the State Administration of Foreign Exchange on Issues concerning Improving the Management of Foreign Exchange Risks Associated with Foreign Institutional Investors Investing in the Interbank Bond Market
Circular of the State Administration of Foreign Exchange on Issues concerning Improving the Management of Foreign Exchange Risks Associated with Foreign Institutional Investors Investing in the Interbank Bond Market
Hui Fa [2020] No.2
January 13, 2020
Branches and foreign exchange management departments of all provinces, autonomous regions and municipalities directly under the Central Government of the State Administration of Foreign Exchange, branches of Shenzhen City, Dalian City, Qingdao City, Xiamen City and Ningbo City of the State Administration of Foreign Exchange, the China Foreign Exchange Trade System and national Chinese-funded banks,
In order to push forward the opening of a foreign exchange market and facilitate the management of foreign exchange risks of foreign institutional investors in the interbank bond market (the "foreign investors"), the issues concerning the foreign investors participating in the domestic foreign exchange market are hereby notified as below in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange and the relevant provisions:
I. Foreign investors may utilize RMB-foreign exchange derivative products in China to manage, for hedging purposes, the foreign exchange risk exposure arising from their investment in the interbank bond market.
For the purpose of the Circular, foreign investors refer to different foreign investors in conformity with the provisions in the Announcement of the People's Bank of China [2016] No.3.
II.
......
Hui Fa [2020] No.2
January 13, 2020
Branches and foreign exchange management departments of all provinces, autonomous regions and municipalities directly under the Central Government of the State Administration of Foreign Exchange, branches of Shenzhen City, Dalian City, Qingdao City, Xiamen City and Ningbo City of the State Administration of Foreign Exchange, the China Foreign Exchange Trade System and national Chinese-funded banks,
In order to push forward the opening of a foreign exchange market and facilitate the management of foreign exchange risks of foreign institutional investors in the interbank bond market (the "foreign investors"), the issues concerning the foreign investors participating in the domestic foreign exchange market are hereby notified as below in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange and the relevant provisions:
I. Foreign investors may utilize RMB-foreign exchange derivative products in China to manage, for hedging purposes, the foreign exchange risk exposure arising from their investment in the interbank bond market.
For the purpose of the Circular, foreign investors refer to different foreign investors in conformity with the provisions in the Announcement of the People's Bank of China [2016] No.3.
II.
......