China Removes Commitment Letters for Foreign Bond Market Access

The Central National Debt Registration and Settlement Co., Ltd. (CCDC) has removed the commitment letter requirement for foreign central banks seeking to invest in China’s bond market. This change, driven by People’s Bank of China directives, simplifies access to the interbank bond market for foreign institutions, potentially boosting foreign holdings of Chinese bonds. This move could also enhance participation from qualified foreign entities in China’s financial markets, according to analysts.