– PBoC has widened access to the onshore interbank credit market
– All global institutional investors are now eligible, free of quota
– How these institutions compete is the only remaining question

Update: Last night, PBoC announced changes to onshore China Interbank bond (IBB) market access and effectively threw the previous access rulebook out the window. Access is now available without quota to the majority of the RMB48tr (USD7.5tr) onshore RMB credit market. This change, and the execution rules to follow, should trigger significant portfolio repositioning among global investors. An unprecedented opportunity (hyperbole warranted) is knocking: the world’s third-largest credit market will now be open and no foreign firm has asserted a strong competitive claim. Asset management, custody, investment banking and all facets of global fixed income finance will be affected by this development. Entering the onshore RMB credit market is now purely a commercial decision and managers that delay adjustment may be making a costly mistake.

Welcome to Z-Ben Advisors’ guide to remaining competitive in a new quota-free China landscape. The market is now changing rapidly by adopting global practices. In brief…

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