On October 27, 2025, the interbank bond market witnessed a historic milestone as China Construction Bank (CCB) facilitated the first-ever universal repo agency transaction. Wuyi Rural Commercial Bank successfully completed the deal through CCB's agency services, marking a breakthrough in financial services for small and medium-sized financial institutions. CCB demonstrated its professional process integration and full-cycle service capabilities, providing a practical pathway for such institutions to execute transactions.

Following the launch of the universal repo agency mechanism by Shanghai Clearing House on September 1, Wuyi Rural Commercial Bank—a regional bank serving local farmers and small businesses in Zhejiang Province—quickly identified the opportunity. The bank urgently needed to enhance liquidity by utilizing its bond holdings through universal repos, and the new mechanism offered a viable solution. Wuyi Rural Commercial Bank promptly reached out to CCB, its long-term partner, for agency support.

As a comprehensive clearing member of Shanghai Clearing House, CCB swiftly responded by forming a dedicated task force spanning headquarters, branches, and sub-branches. The team worked closely with Wuyi Rural Commercial Bank and Shanghai Clearing House to prepare for the transaction. To expedite the process, CCB directly coordinated with Shanghai Clearing House on matters such as agency authorization, transaction instruction standards, and clearing procedures.

This pioneering transaction showcased three key advantages: efficiency, security, and inclusivity. With CCB's agency services, Wuyi Rural Commercial Bank efficiently completed the entire process of instruction submission and fund settlement. Compared to traditional models, the universal repo mechanism significantly simplifies transaction procedures while improving convenience. Shanghai Clearing House acts as the central counterparty, mitigating credit risks and ensuring transaction security for small and medium banks. Additionally, the standardized clearing and settlement process reduced operational costs and capital occupation for Wuyi Rural Commercial Bank, enhancing capital efficiency.

The successful execution of this transaction carries significant industry implications. It not only reflects CCB's commitment to inclusive finance and support for small and medium financial institutions but also establishes a new model for interbank market services. By leveraging large banks' qualifications, technology, and expertise, regional and county-level banks can now efficiently participate in innovative financial market activities, enriching the multi-tiered interbank market ecosystem.

Moving forward, CCB will build on this achievement by strengthening collaboration between its Shanghai and Zhejiang branches. The Shanghai branch will leverage its established relationship with Shanghai Clearing House, while the Zhejiang branch will utilize its local financial institution network to promote universal repo adoption among rural commercial banks in Zhejiang. CCB plans to enhance its agency services in two ways: first, by standardizing operational templates based on this inaugural transaction to expand services, particularly targeting small and medium banks in central and western regions; second, by digitizing agency processes in partnership with Shanghai Clearing House to enable fully online transaction settlement and data queries. Through these efforts, CCB aims to facilitate broader participation of small and medium institutions in the interbank bond market, contributing to its high-quality development.