Offshore Investors and Onshore Dealers of the Bond Connect Northbound Trading,
To facilitate offshore institutional investors’ investment in the China Interbank Bond Market, the National Interbank Funding Center (CFETS), the China Central Depository & Clearing Co., Ltd. (CCDC), the Shanghai Clearing House (SHCH), and the Bond Connect Company Limited (BCCL) will jointly provide the Online One-stop Settlement Failure Reporting Service (“the Service”) under the Northbound Trading of the Bond Connect as from today for higher reporting efficiency. Related issues are notified as follows:
Service Arrangement
1. The Northbound Trading of Bond Connect in this Notice refers to the trading between offshore investors and onshore dealers under the mutual bond market access arrangement between Mainland China and Hong Kong SAR.
2. When settlement failure occurs in the Northbound Trading of Bond Connect, parties of the settlement may file an online settlement failure reporting via the Service in a one-stop manner. The parties do not need to submit settlement failure reporting forms to CFETS, CCDC or SHCH if they have reported the failed trades using the Service.
3. The Service is accessible in the China Inter Bank Market Trading System of CFETS, the ChinaBond Integrated Operation Platform of CCDC, the Integrated Business System of SHCH and the CNYPlus system of BCCL.
Preparing for Using the Service
1. Before using the Service, offshore investors and onshore dealers shall seek relative permissions for their operators reporting settlement failure in the systems of BCCL, CCDC or SHCH as required.
Offshore investors may conduct online reporting either by themselves or by authorizing a third party trade binding entity, and submit the operator application forms to BCCL. BCCL will grant relevant system permissions to the operators of the offshore investors (or the authorized third party trade binding entity) according to the application forms.
Onshore dealers’ appointed administrators in the relevant systems of CCDC and SHCH can manage the settlement failure reporting-related permissions for their operators using the Service.
2. Online reportings made by the operators of offshore investors (or the authorized third party trade binding entity) and onshore dealers in the relevant systems of BCCL, CCDC or SHCH will be treated as actions taken by the corresponding offshore investors and onshore dealers and are legally binding.
Online Reporting Procedures
1. Onshore dealers are responsible for initiating online settlement failure reporting. Onshore dealers shall, in the relevant systems of CCDC or SHCH based on the depository for the underlying bonds, fill in the causes of settlement failure, follow-up remedies, contact details and other necessary information, to initiate the reporting.
2. Offshore investors (or the authorized third party trade binding entity) may check, confirm or reject the settlement failure reporting initiated by the onshore dealers, and fill in the relevant information of the operators through the relevant system of BCCL. When the reporting is rejected by offshore investors, onshore dealers may amend the reporting information and submit the reporting again.
3. Once the settlement failure reporting information is confirmed by the offshore investors, the online reporting is completed. Offshore investors and onshore dealers may review and download the settlement failure reporting information in the relevant systems of CFETS, CCDC, SHCH and BCCL.
Others
1. Offshore investors and onshore dealers shall conduct online reporting during the operation hours of the relevant system.
2. If online settlement failure reporting is not viable due to network disruptions, system glitches or other malfunctions, offshore investors and onshore dealers (or the relevant offshore authorized third party trade binding entity) may alternatively submit the settlement failure reporting forms to file a settlement failure reporting.
3. Please refer to the Manual for Online Settlement Failure Reporting of CCDC, the User Manual of SHCH Integrated Business System and the User Manual of BCCL CNYPlus System for operational details regarding the granting and modification of relevant system permissions and business procedures of online settlement failure reporting.
Contact Information
CFETS
Tel：4009787878
Email：bondconnect@chinamoney.com.cn
CCDC
Tel：010-88170123
Email：jiesuan@chinabond.com.cn
SHCH
Tel：021-23198787
Email：fund@shclearing.com.cn
BCCL
Tel：852-23270807
Email：service@chinabondconnect.com
National Interbank Funding Center
China Central Depository & Clearing Co., Ltd.
Shanghai Clearing House
Bond Connect Company Limited
Dated: 30 June 2023