PBOC seeks opinions: propose to remove the provision freezing the collateral of bonds repurchase.

In order to accelerate the development of a multi-level bond market and unify the registration, custody, clearing, and settlement rules of the financial market, the People's Bank of China has publicly solicited opinions on the decision to amend certain regulations. The decision mainly includes the following contents: firstly, to clarify the legal status of Shanghai Clearing House as the bond registration, custody, and settlement institution. Secondly, to facilitate the trading of government bonds in the open market and promote a high-level opening of the bond market, the provision freezing the collateral securities for bond repurchase has been abolished. Thirdly, based on current practices, relevant regulations regarding the disclosure of financial bond information have been modified. This decision aims to further improve the management regulations of the interbank bond market and promote the high-quality development of the bond market by adjusting clauses that are not in line with current practices and may hinder the development direction of the multi-level bond market. The decision involves amendments to three regulations including the "Regulations on the Issuance of Financial Bonds in the National Interbank Bond Market" (2005 Regulation No. 1), the "Regulations on Non-Financial Corporate Debt Financing Instruments in the Interbank Bond Market" (2008 Regulation No. 1), and the "Regulations on Bond Registration, Custody, and Settlement in the Interbank Bond Market" (2009 Regulation No. 1), focusing on adjusting relevant provisions that are inconsistent with current practices and may restrict the development direction of the multi-level bond market.