FINANCE

China Opens Bond Repo Market Wider to Foreign Investors in Push for Global Integration

Published: Sep. 27, 2025 4:48 a.m. GMT+8

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As of the end of August, 1,170 foreign institutions from 80 countries and regions held about 4 trillion yuan ($550 billion) worth of Chinese bonds.

China on Thursday opened wider doors to its $21 trillion bond market, granting foreign investors full access to repurchase transactions in a move regulators said will align the country more closely with global standards and deepen liquidity.

In a joint notice, the People’s Bank of China, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange said all qualified foreign institutions — including those trading through the Bond Connect link — may now take part in repos, a key short-term financing tool in global debt markets.

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China granted foreign investors full access to its $21 trillion bond market's repo transactions, aligning with global standards.
As of August, 1,170 foreign institutions held about 4 trillion yuan ($550 billion) in Chinese bonds; the new rules will adopt global repo practices.
The reform aims to boost yuan assets’ attractiveness and China’s financial integration, with a 12-month transition for current participants.

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Who’s Who

Bloomberg: Li Bing, President of Bloomberg Asia-Pacific, commented on China's bond market reform. He believes the reform will expand access to yuan liquidity for offshore investors. He stated that this change would increase the global appeal of yuan assets, enhance market-making capabilities, and accelerate China's financial integration.

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