China Adopts Global Bond Repos Standard in Move to Boost Yuan

China allowed foreign investors to participate in onshore repo transactions in the cross-border market, using a global set of standards for the contracts, as part of the country’s efforts to open up its fixed income market and to promote yuan-denominated assets.

The People’s Bank of China has accepted the filing of the Global Master Repurchase Agreement standard for bond repurchase contracts involving bonds in the China Interbank Bond Market, according to a statement by the National Interbank Funding Center. Trading under such agreements will be effective immediately, it said.