Bond Market

bank: Foreign institutions are allowed to have a type A bond settlement agent license, a move to facilitate foreign institutions to invest in the inter-bank bond market, according to Global Times China. The central bank also encouraged foreign institutions to set up or invest in money management companies of Chinese commercial banks and allow them to set up or purchase stake in pension fund companies. The People's Bank of China PBC the country's central bank, unveiled 11 measures to further open up the financial market to foreign firms, including allowing foreign credit agencies to rate all types of bonds in the inter-bank bond market and the exchange bond market, according to a statement published on the website of PBC on Saturday. The bank also scrapped limits in the share-holding ratio for foreign investors, who used to hold below 25 percent. China's further financial openness comes from its need to develop, Dong Shaopeng, an adviser for the China Securities Regulatory Commission, told the Global Times on Saturday. On the stake-holding ratio limit for securities, asset management and future firms, foreign firms will no longer see restrictions by 2020. (news.financializer.com). As reported in the news.