| SHANGHAI, April 8
SHANGHAI, April 8 In Beijing's latest push to
attract foreign investment into the country's $9 trillion bond
market, China's state-owned clearing house said on Saturday that
it will work with Canada's TMX Group to expedite
Shanghai Clearing House, supervised by China's central bank,
said in a statement that by exploring ways to link securities
registration and custody functions with TMX, "Canadian, and even
North American investors will be given easier access to China's
In addition, the People's Bank of China will further
deregulate the bond market by improving legal, accounting,
auditing, taxation and credit rating policies, and strengthen
communications with overseas investors, the statement said.
China has stepped up efforts to open up its bond market
--the world's third largest -- to foreign investors in an effort
to promote international use of the yuan. Attracting inbound
investment could also help counter capital outflows and support
yuan's value as China's economy slows, some analysts have said.
Last month, Citigroup Inc said it would include
China's onshore bonds in its emerging markets and regional
indexes starting on Feb. 1, 2018, following similar moves by
Bloomberg. Chinese Premier Li Keqiang announced last month that
a bond connect scheme with Hong Kong will be launched this year.
Currently, foreign ownership in China's 63.7 trillion yuan
($9.23 trillion) bond market is less than 2 percent.
Shanghai Clearing House said by adopting practices that are
more familiar to investors in mature bond markets, China can
make its bond market more attractive to foreign investors, and
accelerate market deregulation.
The statement was released following a seminar between the
Shanghai Clearing House and TMX held in Toronto on April 6.
($1 = 6.8978 Chinese yuan renminbi)
(Editing by Ros Russell)