To deepen the opening-up of the financial market and further facilitate the liquidity management of overseas institutional investors, the relevant matters concerning bond repurchase business by overseas institutional investors in China's bond market are hereby announced as follows:

I. Definition of Overseas Institutional Investors

For the purposes of this Announcement, overseas institutional investors refer to those eligible to conduct cash bond transactions in China's bond market, including: overseas central banks or monetary authorities, international financial organizations, and sovereign wealth funds; various financial institutions legally registered and established outside the People's Republic of China such as commercial banks, insurance companies, securities companies, fund management companies, futures companies, trust companies, and other asset management institutions; as well as medium and long-term institutional investors such as pension funds, charitable funds, and endowment funds.

II. Definition of Bond Repurchase Business

Bond repurchase business as mentioned in this Announcement includes two forms: pledged repo and outright repo.

III. Basic Compliance Requirements

Overseas institutional investors conducting bond repurchase business shall comply with Chinese laws, regulations, and the provisions of financial regulatory authorities. Relevant fund receipts and payments shall conform to the fund and account management regulations of the corresponding investment channels for their cash bond transactions.

Overseas institutional investors conducting bond repurchase business through the Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) channels (collectively referred to as QFIIs) shall abide by the relevant provisions on domestic investment, accounts, and fund remittance management for QFIIs.

IV. Responsibilities of Domestic Financial Market Infrastructures

Domestic relevant financial market infrastructures shall formulate or revise business rules and operating procedures, and report them to the People's Bank of China (PBC), China Securities Regulatory Commission (CSRC), and other relevant financial regulatory authorities in accordance with regulations; provide and monitor relevant trading, custody, settlement, and clearing services, and promptly handle and report major issues and abnormal situations to the PBC, CSRC, and other relevant financial regulatory authorities.

V. Requirements for Overseas Service Providers

Overseas financial market infrastructures, self-regulatory organizations, industry associations, and other entities providing services for overseas institutional investors' bond repurchase business shall comply with Chinese laws, regulations, and the provisions of financial regulatory authorities, and accept supervision and administration in accordance with the law.

VI. Self-Regulatory Management

Domestic self-regulatory organizations shall strengthen self-regulatory management of bond repurchase business.

VII. Master Repurchase Agreement

Overseas institutional investors shall sign a master bond repurchase agreement in accordance with relevant provisions. Relevant self-regulatory organizations and industry associations shall file the standard version of the master agreement with the PBC, CSRC, and other relevant financial regulatory authorities.

VIII. Regulatory Cooperation

The PBC, CSRC, and State Administration of Foreign Exchange (SAFE) shall strengthen regulatory cooperation. The PBC shall conduct macro-prudential management of bond repurchase business by overseas institutional investors in accordance with the law. The PBC and CSRC shall, in accordance with their respective responsibilities, supervise and administer the bond repurchase business by overseas institutional investors in accordance with the law. SAFE shall strengthen the management of foreign exchange transactions involving bond repurchase business by overseas institutional investors in accordance with the law.

IX. Legal Liability

For violations of laws, regulations, this Announcement, or the provisions of financial regulatory authorities, the PBC, CSRC, and SAFE shall take supervisory and administrative measures in accordance with the law; where administrative penalties are legally applicable, penalties shall be imposed in accordance with the People's Bank of China Law of the People's Republic of China, Securities Law of the People's Republic of China, Regulations of the People's Republic of China on Foreign Exchange Administration, and other relevant laws and regulations.

X. Application to Investors from Hong Kong, Macao, and Taiwan

Institutional investors established in the Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Region conducting bond repurchase business shall apply the provisions of this Announcement.

XI. Interpretation

This Announcement shall be interpreted by the PBC, CSRC, and SAFE.

XII. Effective Date

This Announcement shall come into force on the date of issuance. The Notice of the People's Bank of China on Bond Repurchase Transactions in the Interbank Bond Market by Offshore RMB Clearing Banks and Offshore Participating Banks (Yin Fa〔2015〕No. 170) shall be abolished simultaneously.