-The number of foreign investors and AUM in RMB credit saw a marked increase in September
-Chinese regulators have given early stage tax clarity for the CIBM
-Tax treatment across all the inbound programs is now similar

Update: As the RMB enters the IMF’s special drawing rights (SDR) basket this month, more adjustments are being made to smooth access to Chinese credit for global institutions. Incremental changes are having the desired effect and September alone saw USD11bn flow into government and policy bank bonds – likely from global central banks beginning the transition to RMB-denominated holdings. The full opening of China’s main bond market for access was itself a big deal but, as with most financial reform, there remained some issues. These are being addressed one after the other, the latest being taxation. Both clarity from regulators and solutions implemented by service providers should make the market more approachable for global managers. As a result, Z-Ben Advisors believes there will be an uptick in managers registering to access the bond market.

For all the excitement that open access to China’s interbank bond market (CIBM) brought, …

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