On September 26, the People's Bank of China, China Securities Regulatory Commission, and State Administration of Foreign Exchange jointly issued the "Announcement on Further Supporting Overseas Institutional Investors in Conducting Bond Repo Business" (hereinafter referred to as the "Announcement"). The Announcement supports various types of overseas institutional investors in conducting bond repo business in China's bond market. This policy arrangement represents another important measure to deepen the opening of China's bond market. Through dual expansion of investor types and trading channels, it enhances the attractiveness of RMB bond assets, further meets the liquidity management needs of overseas institutional investors, promotes interconnectivity between onshore and offshore markets, and strengthens the investment and financing functions of RMB bonds in international markets.

CITIC Securities Company Limited and China International Capital Corporation Limited were selected as the first batch of cross-border repo market makers under the new policy. As the sole partner bank for these two market-making institutions' Bond Connect "Northbound Connect" business, Bank of China Beijing Branch closely followed the implementation of the new policy, actively coordinated with securities company clients, assisted securities firms in advancing their inaugural plans, and maintained detailed communication with cross-border RMB regulatory departments regarding risk management and information reporting requirements.

On September 29, CITIC Securities Company Limited and China International Capital Corporation Limited respectively completed their first bond repo transactions through the Bond Connect channel. Bank of China processed cross-border settlement of repo transaction funds for both securities firms through its own system, ensuring successful transaction execution.

The implementation of this new policy marks a solid step forward in the further opening of the interbank bond market, further enriching the investment and trading mechanisms of RMB capital markets. Bank of China Beijing Branch will continue to actively serve the national opening-up strategy, provide high-quality cross-border financial services to the market, and contribute greater strength to steadily advancing high-level institutional opening of China's securities market through comprehensive and diversified quality services.