ICMA and CCDC issue joint White Paper on the use of RMB bonds in global repo transactions


26 March 2024 ICMA and the China Central Depository & Clearing Co (CCDC) issued an English edition of their joint White Paper Use of RMB-denominated Bonds as Collateral for Global Repo Transactions. The paper was released at an ICMA event in Hong Kong (hosted by HKMA) which looked at innovation and opportunities in the Chinese and broader Asian cross-border bond markets. The paper reviews in-depth the differences between the domestic and international market structure, trade mechanisms and documentation, aiming to provide clarity for global market participants wishing to trade in China’s repo market.

In line with the ongoing internationalisation of the RMB bond market, the opening of China’s repo market is expected to drive further convergence in institutional rules, as channels for mutual recognition of cross-border collateral between China and foreign markets are established. The paper was initially presented in October 2023 at the China Bond Collateral International Forum and the Chinese version of the White Paper already gained significant market interest. The release of the English version of the paper is hoped to further reinforce the role of Renminbi bonds as collateral in the global market, fostering increased interest from international investors.

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