China announced on Friday that it would further facilitate foreign institutional investment in its bond market and coordinate the opening of interbank and stock market bond markets.
The country aims to increase investor diversity, while improving the liquidity and stability of its bond market, according to a joint statement issued by the central bank and top securities and foreign exchange regulators.
Measures will be adopted to support qualified foreign institutional investors in direct investment or through connectivity in the bond market and independent choice of trading venues.
“Investment procedures will be simplified, market access will be expanded to the stock market,” an official from the People’s Bank of China said, adding that foreign institutional investors will enter the market as legal persons.
The announcement will come into effect on June 30, 2022.