• Major players are preparing to access RMB credit as SAFE starts to make clarifications
• Managers and service providers will all be actively looking to benefit
• Future inbound access reform could be built around these IBB changes

Update: PBoC significantly liberalized access to the interbank bond (IBB) market two weeks ago and Z-Ben Advisors has already observed movement from major global managers. These firms are acknowledging that, pending execution clarifications, it should set a new rulebook to effectively flatten the competitive playing field for global managers. IBB reforms will not just see an influx of global managers into the Mainland, they also represent a major opportunity for index providers and ratings agencies, amongst other service providers. This represents a broader change in the way that firms should think about their China strategy, as IBB investment management looks set to become a key business area. More importantly, IBB access could indicate a new prototype for future inbound access reform.

SAFE has provided some clarification following the announcement of new IBB rules. Based on the information we have seen, the new program appears to be…

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