New Rules to Streamline Foreign Investment in $20 Trillion Bond Market

China issued new rules Friday to streamline foreign institutions’ investments in China’s $20 trillion bond market and make the market more appealing to them, according to the State Administration of Foreign Exchange (SAFE).

The regulations, jointly issued by SAFE and the People’s Bank of China, provide detailed guidance on how foreign institutional investors should manage their cash accounts, settle foreign exchange and manage risks for investments in China’s bond market. They take effect Jan. 1.