In accordance with the Order No. 1 [2017] of the People's Bank of China, the Shanghai Head Office of the People's Bank of China has formulated the Guide on Registration of Overseas Investors for Northbound Trading in Bond Connect, which is effective on the date of its release.
The Shanghai Head Office of the People's Bank of China
June 22, 2017
Guide on Registration of Overseas Investors for Northbound Trading in Bond Connect
Article 1 Pursuant to the Interim Measures for the Administration of Mutual Bond Market Access between Mainland China and Hong Kong (Decree No.1 [2017], Interim Measures), the Notice No.3 [2016], the Notice of the People’s Bank of China (PBoC) on Issues Concerning Investment of Foreign Central Banks, International Financial Institutions and Sovereign Wealth Funds with RMB Funds in the Inter-bank Market (Notice No.220 [2015]), the Guide is formulated for registration of overseas investors for Northbound Trading in Bond Connect.
Article 2 Bond Connect and Northbound Trading in the Guide refer to Bond Connect and Northbound Trading specified in the Interim Measures.
Article 3 Overseas investors for Northbound Trading refer to eligible overseas institutional investors specified in the notices, which satisfy the requirements listed in the notices for entry into inter-bank bond market.
Article 4 Eligible overseas investors may entrust the China Foreign Exchange Trade System & National Interbank Funding Center (CFETS), domestic bond custodians recognised by the PBoC (domestic bond custodians), settlement agents in the inter-bank bond market, or other institutions recognised by the PBoC as registration agents to apply for registration to the PBoC Shanghai Head Office.
Overseas investors may provide registration documents to the above-mentioned registration agents directly or through their overseas counterparts. The registration agents shall provide relevant facility for overseas investors.
The registration is conducted via the Inter-bank Bond Market Registration Management System.
(https://ibrs.chinamoney.com.cn/IBRSW/)
Article 5 The requirements for registration of overseas investors for Northbound Trading are as follows:
A. Documents for Registration:
(1) Application for registration (application);
(2) Registration form for overseas investors under Bond Connect (registration form, see Appendix);
(3) A letter of entrustment for registration.
B. Please Fill in the application form via the registration system:
(1) Name of Account: please fill in the name of the overseas investor, which should be consistent with that in the registration form;
(2) Type of Investor: please select from the listed types in the system, which should be consistent with Type of Entity in the registration form;
(3) Type of Settlement: please select “Bond Connect”;
(4) When applying for registration of alternation, please select “Registration of Alternation”, and fill in the items to be altered in a standard format, eg. “Name of Account” to be altered from XXX to XXX;
(5) Contact information of Custodian/Settlement Agent: please fill in N/A;
C. The registration form must be completed in both Chinese and English.
(1) Type of Entity should be consistent with Type of Investor in the application form;
(2) The completed registration form must be signed or sealed by the director of the overseas investor.
Article 6 When the CFETS, domestic bond custodians, settlement agents in the inter-bank bond market, or other institutions recognised by the PBoC is entrusted as a registration agent, it should urge the overseas investor to provide true, accurate and complete information.
Article 7 Within 3 business days after accepting the application of registration, the PBoC Shanghai Head Office shall issue a Registration Notice, in accordance with required conditions and procedures. After receiving the Registration Notice, an overseas investor may apply to the CFETS for opening an account.
Article 8 When an overseas investor needs to alter recorded information such as the name of entity, investment management company, or custodian etc., the investor should apply to the PBoC Shanghai Head Office for registration of alternation in a timely manner. The application form should be filled in via the registration system, and an information note on the alternation should be submitted together with the original Registration Notice. The Registration Form does not need to be submitted again. Supporting documents for alternation of name, contracts and other relevant documents should be submitted accordingly.
Article 9 When the CFETS opens an account for an overseas investor, the name of the account should be consistent with that on the Registration Notice issued by the PBoC Shanghai Head Office.
Article 10 The CFETS and domestic custodians shall, in line with their respective responsibilities, make efforts to provide relevant services and monitor transactions. Within the first 5 business days of each month, the information on overseas investors’ activities of Northbound Trading in the month before shall be reported to the PBoC Shanghai Head Office, which should be guaranteed true, accurate and complete. In particular, names of overseas investors should be consistent with that on the Registration Notice issued by the PBoC Shanghai Head Office.
Article 11 The PBoC Shanghai Head Office shall be responsible for interpretation and revision of the Guide.
Article 12 The Guide shall become effective on the date of its release.
Supporting Documents:
1. Registration Form for Overseas Investors from Bond Connect (For Incorporated Entities).doc
2. Registration Form for Overseas Investors from Bond Connect (For Unincorporated Entities).doc
