On May 11, Bank of Communications submitted orders to the auction system of the Shanghai Stock Exchange (SSE) through its rented business units, and concluded deals of RMB40 million, which not only marked the success of the mode whereby listed commercial banks participate in the trading of bonds at the bourse through their business units rented from securities companies but also proved the SSE's capability to ensure the security of listed commercial banks' trading information and technology in the aforesaid mode.
Since the "Notice of Relevant Issues Concerning Listed Commercial Banks' Pilot Trading of Bonds at Stock Exchanges" was jointly issued by the People's Bank of China (PBC), the China Banking Regulatory Commission (CBRC) and the China Securities Regulatory Commission (CSRC) in September 2010, the SSE, attaching great importance to the pilot project of listed commercial banks' return to the bourse's bond market, has made careful preparations with all its resources according to the unified deployment of the CSRC and in the principle of "warm welcome, efficient service and ensured safety" by publishing the notice of pilot project and the business guide in time, combing relevant business procedures earnestly, and checking and removing technical risks thoroughly. A one-stop service team has also been set up and accomplished a great deal of market promotion and coordination work including policy interpretation, market survey, business and technical training, and on-the-spot business handling.
On December 6, 2010, Bank of Communications completed the first deal through the SSE auction system, becoming the first listed commercial bank returning to the bourse's bond market after 13 years. Afterwards, other listed commercial banks followed suit by clarifying business procedures, perfecting internal control mechanism and configuring and optimizing technical systems on the one hand and negotiating with securities companies for rent of business units on the other hand. At present, listed commercial banks including Industrial and Commercial Bank of China (ICBC), Bank of Beijing, and Bank of Nanjing are actively handling relevant procedures.
Listed commercial banks' return to bourses' bond markets is the first step of the development of China's unified and interrelated bond market and an inevitable growth trend of China's bond market as well. It is a crucial move of the PBC, the CBRC and the CSRC to carry out the requirements of establishment of a unified and interrelated bond market in the "Nine Opinions" and promotion of listed commercial banks' pilot trading at bourses' bond markets in the "30 Opinions on Finance".
Industry insiders held that the success in listed commercial banks' trading at SSE bond market was an embodiment of the SSE and listed commercial banks' implementation of relevant work instructions of the PBC, the CBRC and the CSRC. It put an end to the 13-year separation of China's bond market participants, and signaled a substantial progress in the building of China's unified and interrelated bond market. This great step forward will benefit the liquidity and operating efficiency of China's bond market, expand the financing scale and the direct financing proportion and reinforce the pricing function of bond yields for a healthier long-term market growth, and be conducive to the stable, sound and fast development of China's capital market as well as the increased efficiency and capability of capital market in serving national economy.
According to an official of the SSE, the bourse, upholding the philosophy of serving markets and investors, will learn from its experience and perfect relevant trading and settlement systems consistently to boost the construction of China's unified and interrelated bond market.
FTSE Mondo Visione Exchanges Index:
Shanghai Stock Exchange Encourages Listed Banks To Trade Bonds At Bourse
Date 12/05/2011