China Repo Markets
ICMA has been at the forefront of actively promoting the internationalisation of China’s repo markets at both cross-border and onshore levels through consultation responses, advocacy efforts and thought leadership publications. Key milestones achieved so far include the recognition of the GMRA for use in offshore RMB bond repo business using bonds held under Northbound Bond Connect as collateral, announced by the HKMA on 13 January 2025, and most recently, the recognition of the GMRA by the PBoC for bond repo transactions involving bonds in the China Interbank Bond Market (CIBM) on 30 January 2026 (see ICMA’s announcement), following ICMA’s filing of the GMRA with the PBoC.
ICMA China Repo Committee
In April 2026, the China Repo Committee (GRCF China Committee) was established under ICMA’s Global Repo and Collateral Forum, which forms part of ICMA’s broader repo governance framework under the ICMA International Repo and Collateral Council (IRCC).
The establishment of the Committee reflects the increasing importance of the Chinese repo market within the global fixed income landscape, supported by ongoing market and regulatory developments that promote greater international participation.
The Committee serves as a dedicated forum for market participants to discuss developments relating to China’s repo market, with a particular focus on cross-border activity, and to share perspectives and practical experience to help shape market practice.
If you would like to join, please contact us.
Relevant materials, including the Committee Terms of Reference and meeting agendas are available below.
- Terms of Reference
- 1st Committee meeting agenda (23 April 2026)
Key market developments and consultation responses:
ICMA responds to the consultation of the draft of the Financial Law of the PRC
17 April 2026 ICMA submitted today its consultation response to the Ministry of Justice of the PRC on the proposed amendments to the draft financial law of the PRC. ICMA recommends clarifying that any court-led reorganisation or liquidation initiated under Article 65 will operate consistently with the PRC’s QFT/close-out netting policy direction, preserving the enforceability of close-out netting and collateral arrangements for designated QFTs (including repo and securities lending under the GMRA and GMSLA). In addition, ICMA supports the risk disposal toolkit in Article 67, while urging definition clarity to ensure that any restriction on early termination rights for QFTs is limited to the specific, time-bound 48-hour stay in Article 67(1)(8), and that broader “financial trades” powers under Article 67(1)(4) cannot be used to extend or replicate a stay. Finally, ICMA recommends that the exemption power in Article 67(2) be tightly constrained by necessity and proportionality safeguards and should not be interpreted to undermine QFT close-out netting certainty beyond the narrow stay framework. ICMA remains committed to constructive engagement for a resilient, internationally interoperable legal framework that promotes stability, liquidity, and long-term market development.
PBoC’s recognition of the GMRA for bond repo transactions involving CIBM bonds
30 January 2026 Pursuant to the September 2025 announcement from the PBoC, CSRC, SAFE and related Q&A to broaden access for offshore investors to China's repo market, the PBoC has now recognised the use of the GMRA for bond repo transactions involving bonds in the CIBM, following ICMA's filing of the GMRA with the PBoC (see ICMA’s announcement).
ICMA co-responds to the PRC Enterprise Bankruptcy Law (Draft Amendments) with ASIFMA
10 October 2025 ICMA, together with ASIFMA, submitted a co-response on the PRC Enterprise Bankruptcy Law (Draft Amendments) to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress (here). We welcome the amendments and support a transparent, predictable, and internationally aligned insolvency framework. From a repo and collateral perspective, our core advocacy focuses on strengthening legal certainty for qualified financial transactions (QFTs) and close-out netting, including repo and securities lending under master agreements like the GMRA and GMSLA. We strongly support the introduction of Article 58, which would protect QFT close-out netting from insolvency-related “cherry-picking” and claw-back risks, and urge clear designations and guidance to include repo and securities lending within scope.
PBoC, CSRC and SAFE jointly issue the announcement on further supporting overseas institutional investors in conducting bond repo business in China’s bond market
26 September 2025 The PBoC, CSRC, and SAFE jointly issued an announcement further supporting overseas institutional investors eligible for cash bond trading in China’s bond market to conduct bond repurchase (repo) business. Under this policy, all overseas institutional investors already investing in the onshore bond market, including Bond Connect investors, will be allowed to participate in onshore repo transactions and to remit the RMB liquidity thus obtained for offshore use. CEFTS, CCDC, and SHCH also jointly issued an announcement on supporting overseas institutional investors in conducting bond repo business in the CIBM.
ICMA responds to the Decision on Amending Certain Regulations on the CIBM by PBoC
15 August 2025 ICMA submitted a consultation response to the PBoC on the proposed amendments to the CIBM (here). ICMA welcomes the PBoC’s proposed amendments and supports ongoing efforts to further develop and internationalise the CIBM, particularly through measures that enhance the efficiency and usability of repo collateral. With ICMA’s core advocacy focused on promoting greater alignment with international repo market practices and supporting the development of a robust, internationally interoperable legal and documentation framework, ICMA highlights the importance of facilitating the use of internationally recognised master agreements, in particular the GMRA, and ensuring clear legal certainty around the enforceability of close-out netting for repo and related securities financing transactions under PRC law. ICMA also encourages continued reforms to enhance collateral flexibility and reusability, as well as further engagement with market participants to support consistent understanding and adoption of global best practices as China’s repo market continues to open and evolve.
Enhancement arrangements for the offshore RMB bond repurchase business announced by HKMA
8 July 2025 The HKMA announced further enhancements to the offshore RMB bond repo business first introduced on 13 January 2025 (here), namely: (1) support for the rehypothecation of bond collateral during the repo period; and (2) support for cross-currency repo transactions (including HKD, USD and EUR).
Launch of the arrangement for offshore RMB bond repo business as announced by the HKMA
13 January 2025 The HKMA announced the arrangement for offshore RMB bond repo business, under which Northbound Bond Connect participants will be able to use eligible onshore bonds as collateral to conduct RMB repo transactions in Hong Kong with designated market makers.
2025 UK-China Economic and Financial Dialogue (EFD): Inclusion of ICMA in the policy outcomes
11 January 2025 The Chancellor of the Exchequer, Rachel Reeves, and Chinese Vice Premier, He Lifeng, concluded the 2025 UK-China EFD in Beijing. In the EFD’s policy outcomes, ICMA was cited on capital markets. Key repo-related points:
- Both sides welcome further collaboration between the PBoC and ICMA to assist in China’s adoption of ICMA’s Global Master Repurchase Agreement (GMRA). Both sides note qualified UK financial institutions can participate in bond repo via the Qualified Foreign Investor (QFI) and China Interbank Bond Market (CIBM) Direct programme.
- China welcomes more qualified UK institutional investors and issuers to actively participate in China’s interbank market. Both sides also welcome the National Association of Financial Market Institutional Investors (NAFMII) and ICMA to further deepen cooperation on green bonds, panda bonds, primary bond market practices, repo, and collateral management under the framework of their MoU.
Launch of the ICMA-CCDC white paper on the use of RMB bonds in global repo transactions
26 March 2024 ICMA and the China Central Depository & Clearing Co (CCDC) issued an English edition of their joint White Paper on the use of RMB-denominated bonds as collateral for global repo transactions. The paper reviews in-depth the differences between the domestic and international market structure, trade mechanisms and documentation, aiming to provide clarity for global market participants wishing to trade in China’s repo market. In line with the ongoing internationalisation of the RMB bond market, the opening of China’s repo market is expected to drive further convergence in institutional rules, as channels for mutual recognition of cross-border collateral between China and foreign markets are established.
ICMA co-responds to the PBoC consultation on overseas investor participation in the CIBM repo market with ASIFMA
23 February 2024 ICMA, together with ASIFMA, submitted a response to the PBoC and SAFE on the proposed framework to further support offshore institutional investors engaging in repo business in the CIBM. ICMA and ASIFMA welcome the authorities’ efforts to open and internationalise the CIBM repo market and supports measures that enhance accessibility, efficiency, and usability for international investors. In particularly, ICMA and ASIFMA advocate for the explicit recognition and use of internationally recognised master agreements, as well as clear legal certainty around the enforceability of close-out netting for repo transactions. To support the continued development of the CIBM repo market, ICMA and ASIFMA also call for further guidance on key operational, legal, and regulatory aspects, including market access, settlement processes, and tax treatment.
Contacts:
For further information, please contact Alex Tsang or Zhan Chen, secretaries to the ICMA China Repo Committee.
