China Exchanges Open Bond Repo Trading to Foreign Investors
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China’s two major stock exchanges have authorized foreign institutional investors to conduct bond repurchase transactions, extending access to the exchange bond market as the country continues to open its onshore financial system.
The Shanghai and Shenzhen stock exchanges said Friday that qualified overseas institutions are now permitted to participate in bond repo trading in the exchange market. Under the new rules, these institutions can engage in pledged bond repos — financing deals in which bonds are used as collateral — and act as cash lenders in certain repo transactions, the exchanges said.
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- Shanghai and Shenzhen stock exchanges now allow qualified foreign institutional investors to conduct bond repo transactions on the exchange bond market.
- This extends an earlier move from September 2023, permitting foreign investors to do repos in China’s interbank market.
- The new exchange rules do not specify whether collateral bond ownership can be transferred during repo transactions, unlike the updated interbank rules.
- September, 2025：
- The approach of allowing temporary transfer of collateral ownership in repo transactions was introduced for foreign institutional investors in China’s interbank bond market.
- Late September, 2025：
- Chinese regulators allowed foreign institutional investors to conduct bond repos in the interbank market.
- Friday, 2025：
- Shanghai and Shenzhen stock exchanges announced that qualified overseas institutions are permitted to participate in bond repo trading in the exchange market.
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