China Interbank Bond Market
From Wikipedia, the free encyclopedia
Native name | 银行间债券市场 |
|---|---|
| Founded | 1997 |
| Parent | People's Bank of China |
The China Interbank Bond Market (CIBM) (Chinese: 银行间债券市场) is the largest domestic bond market in China and, as of 2022, is the second-largest in the world, only trailing the United States bond market. The CIBM has over US$21.5 trillion in outstanding volume as of the end of 2022.[1] The CIBM was formed in 1997 after the People's Bank of China (PBOC) mandated commercial banks to move their bond trading out of the stock exchanges and into an interbank market operating through an electronic trading system.
The CIBM has grown rapidly since its inception. Average daily turnover has increased by over 400% in the past 12 years.[2] In 2016 for the first time, medium and long-term qualified foreign institutional investors recognized by People's Bank of China were allowed to invest in the CIBM without quota limits.[3] In March 2022, overseas institutional investors made up 2.9 percent of the outstanding volume of bonds under custody in CIBM.[4]
The CIBM is an over-the-counter market between institutional investors. The trading system was developed by the China Foreign Exchange Trade System (CFETS). CFETS provides trade processing, training, and benchmark services for the CIBM, monitoring transactions, and providing support for monetary policy transmission of the People's Bank of China. The Shanghai Clearing House and China Central Depository & Clearing Co., Ltd. provide market participants with bond ownership, transaction information, and clearing and settlement services.[2] With the authorization of the People's Bank of China, the Interbank Center and China Central Depository & Clearing Corporation may disclose market-related information.[5]
| Name | Main Functions | Fixed-income Products |
|---|---|---|
| China Foreign Exchange Trade System | Trade repository, facilitating over-the-counter trading | All products traded on the CIBM |
| Shanghai Clearing House | Registration, depository, clearing and settlement | Chinese government bonds, central bank bills, financial bonds, and enterprise bonds. |
| China Central Depository & Clearing | credit risk mitigations, debt financing instruments, Negotiable Certificate Deposits |