Trading Specifications

Definition

Cash bond transaction refers to a transaction act where both trading parties transfer the ownership of bonds at an agreed rate. 

Trading Mechanism

Bilateral trading and one-click trading

Instruments

Tradable bonds, in terms of types, include treasury bonds, central bank papers, financial bonds, subordinated bonds, corporate bonds, international development institution bonds, commercial papers, asset-backed securities and so on. 

Trading Hours

T+0: Beijing time 9:00-12:00 am, 1:30-4:50 pm, 

T+1: Beijing time 9:00-12:00 am, 1:30-5:00 pm, 

excluding Chinese statutory holidays.

Market Participants

Commercial banks and its authorized branches, rural credit unions, urban credit cooperatives, finance companies, securities companies and other relevant financial institutions which all have independent legal personality, and foreign-funded financial institutions which conduct RMB business after approved by the PBC, can all enter into the market for transaction.

Method of Clearing & Settlement

The two trading parties, at the specified date, shall handle gross settlement in accordance with deal ticket. Bond trust settlement is carried out through the China Central Depository & Clearing Co., Ltd., while funds settlement is conducted through the China National Automatic Payment System of PBC. Three types of settlement, namely "payment after bonds ", "bonds after payment" and "DVP", are available.