Shanghai Clearing House recently published guidelines on the registration, trustee service, clearing and settlement of cross-border bond business in Shanghai Free Trade Zone.

The guidelines apply to cross-border bonds traded in yuan and will be followed by companies in the free trade zone and by overseas institutions in cross-border bond business. A bond issuer can be a domestic or a foreign company in the FTZ. International investors can buy the bond in overseas markets without opening an exclusive account and can settle bond transactions through Shanghai Clearing House or international trustee services.

Yuan-denominated bonds can be purchased online or at commercial banks inside the Shanghai FTZ. The cross-border bond settlement services offered by Shanghai Clearing House aims to accumulate experiences for the opening of China's bond market, said Xu Zhen, chairman of Shanghai Clearing Housing.

Source: Shanghai FTZ Government.cn