SHCH Officially Launched FTZ Over-the-counter Bond Services
On September 23rd, 2016, SHCH officially launched FTZ over-the-counter bond services, providing new asset configuration channel for FTZ and foreign investors.
As the first undertaking bank, Bank of China transferred 20 million existing bonds in the interbank market to FTZ, within the quota approved by PBOC and sold these bonds through its FTZ counter and website.
FTZ OTC Bond Service is an important component of FTZ cross-border RMB bond service. Recorded undertaking institutions may sell RMB bonds over-the-counter of its branches in FTZ to FTZ investors and foreign investors who have opened FTZ OTC bond accounts, and offer market-making and secondary custody service. As the CSD, SHCH is responsible for general registration and daily monitoring.
Launching of FTZ OTC bond service by SHCH marked the first OTC offering of credit bonds in commercial bank. The first such transaction was concluded in secondary bond market by investors through free trade account system.