Guide on the Registration of the Access of Overseas Investors for “Northbound Trading” in “Bond Connect”

· Document Number：Announcement No. 1 [2017] of the Shanghai Head Office of the People’s Bank of China

· Area of Law： Banking & Finance

· Level of Authority： Local Regulatory Documents

· Date issued：06-22-2017

· Effective Date：06-22-2017

· Status： Effective

· Issuing Authority： People's Bank of China, Shanghai Head Office

Announcement of the Shanghai Head Office of the People's Bank of China
(No. 1 [2017])
In accordance with the provisions of the Order No. 1 [2017] of the People's Bank of China, the Shanghai Head Office of the People's Bank of China has developed the Guide on the Registration of the Access of Overseas Investors for “Northbound Trading” in “Bond Connect,” which are hereby issued for implementation.
Shanghai Head Office of the People's Bank of China
June 22, 2017
Guide on the Registration of the Access of Overseas Investors for “Northbound Trading” in “Bond Connect”
Article 1 To effectively conduct the registration of the access of overseas investors for “Northbound Trading” in “Bond Connect,” this Guide is developed in accordance with the provisions of the Interim Measures of the People's Bank of China for the Administration of Mutual Bond Market Access between Mainland China and Hong Kong (Order No. 1 [2017], PBC, hereinafter referred to as the “Interim Measures”), the Announcement No. 3 [2016] of the People's Bank of China (hereinafter referred to as the "Announcement”), and the Notice of the People's Bank of China on ?Issues concerning Investment of Foreign Central Banks, International Financial Institutions and Sovereign Wealth Funds with RMB Funds in the Inter-bank Market??(No. 220 [2015], PBC).
Article 2 For the purpose of this Guide, “Bond Connect” and “Northbound Trading” means Bond Connect and Northbound Trading specified in the Interim Measures.
Article 3 “Overseas investors for Northbound Trading” means foreign institutional investors?as prescribed in the Announcement and the Notice, which shall meet the requirements of the Announcement and the Notice for access to inter-bank bond market.
Article 4 Eligible overseas investors may entrust China Foreign Exchange Trade System & National Interbank Funding Center (hereinafter referred to as the “CFETS”), domestic bond custodians recognized by the People's Bank of China (hereinafter referred to as “domestic bond custodians”), settlement agents in the inter-bank bond market, or other institutions recognized by the People's Bank of China as registration agents to apply for registration to the Shanghai Head Office of the People's Bank of China.
Overseas investors may provide relevant registration materials to the aforesaid registration agents directly or through their overseas cooperative institutions. The registration agents shall provide relevant convenience for overseas investors.
The registration shall be conducted via the Inter-bank Bond Market Access Registration Management System (website: https://brs.chinamoney.com.cn/IBRSW/).
Article 5 The specific requirements for the registration of the access of an overseas investor for Northbound Trading are as follows:
(1) Registration documents for the overseas investor
(a) Application form for registration (application form).
(b) Registration form for overseas investors under Bond Connect (hereinafter referred to as the “registration form,” see the Annex).
(c) A letter of entrustment for registration.
(2) An application form shall be filled out online via the registration information system
(a) “Name of Bond Account”: please fill in the name of the “overseas investor,” which shall be consistent with that in the registration form.
(b) “Type of Entity”: please select from the types listed in the system, which shall be consistent with “Type of Investor” in the registration form.
(c) “Type of Account Settlement:” please select “Bond Connect.”
(d) When applying for registration of alteration, please select the column “Registration of Alteration”, indicate the contents to be altered in the column “Items to be Altered,” and fill in the “items to be modified” in a standard format, eg. “Name of Bond Account” to be altered from XXX to XXX.
(e) Contact information of “Custodian/Settlement Agent”: please fill in “N/A.”
(3) The registration form must be completed in both Chinese and English.
(a) “Type of Investor” shall be consistent with that in the column “Type of Entity” in the application form.
(b) The completed registration form must be signed or sealed by the person in charge of the overseas investor.
Article 6 When the CFETS, a domestic bond custodian, a settlement agent in the inter-bank bond market, or any other institution recognized by the People's Bank of China is entrusted as a registration agent, it shall urge the overseas investor to provide true, accurate and complete information.
Article 7 The Shanghai Head Office of the People's Bank of China shall, within three working days from the date of acceptance of a registration application, accept the registration application in accordance with required conditions and procedures and issue a Registration Notice. After receiving a Registration Notice, an overseas investor may apply to the CFETS for opening a trading account.
Article 8 When an overseas investor needs to alter important information such as the name of entity, investment manager, or custodian, among others, the investor shall apply to Shanghai Head Office of the People's Bank of China for registration of alternation in a timely manner. An application form shall be filled out for the recordation of alteration, and the explanations on the alteration and the notice on original account registration shall be submitted. The Registration Form does not need to be filled out again, and the basis for alteration of name and relevant agreements, among others, shall be submitted in a supplementary manner in light of the actual circumstances.
Article 9 When the CFETS opens a trading account for an overseas investor, the name of the account shall be consistent with that on the Registration Notice issued by the Shanghai Head Office of the People's Bank of China.
Article 10 The CFETS and domestic custodians shall, according to their respective responsibilities, effectively conduct the relevant service and monitoring work, and, within the first five working days of each month, submit the information on overseas investors' business activities of Northbound Trading in the previous month to the Shanghai Head Office of the People's Bank of China, and be responsible for the truthfulness, accuracy and completeness of the submitted data. In particular, names of overseas investors shall be consistent with those in the Registration Notice issued by Shanghai Head Office of the People's Bank of China.
Article 11 The power to interpret and revise this Guide shall remain with the Shanghai Head Office of the People's Bank of China.
Article 12 This Guide shall come into force on the date of issuance.
Schedule 1　Registration Form for Overseas Investors from Bond Connect (for Incorporated Entities)
Schedule 2　Registration Form for Overseas Investors from Bond Connect (for Unincorporated Entities)

Schedule 1:

“债券通”境外投资者备案表
Registration Form for Overseas Investors from Bond Connect
（法人类）
（For Incorporated Entities）
投资者名称： 代理备案机构：
Name of Entity Registration Agent

盖章/签字（Official Seal/Signature）：
填表说明 Note：
1.表格用中文和英文填写。境外投资者若无中文名的，“投资者名称”可仅填写英文名。
Please fill out this form in both Chinese and English. If an overseas investor has no Chinese name， “Name of Entity” may be filled in English name only.
2.申请机构简介或投资管理人简介包括监管法律、组织结构（含投资职能）等内容。
Brief Introduction or Brief Introduction of Investment Management Company： background on governing law， organizational structure （including investment function）， etc.
3.投资负责人信息须填写债券投资管理人及投资主要负责人的基本情况。
Investment Managers： Please provide basic information about persons responsible for investment in China， i.e.， Head of Investment Management， Head of Dealing Room （Front Office）， Head of Risk Management （Middle Office）， and Head of Settlement （Back Office）.
4.境外托管路径须填写境外投资者通过第一级托管机构到香港金管局债务工具中央结算系统（CMU）间的所有托管机构。其中第一级托管机构是指境外投资者直接签署托管协议开立债券账户的托管机构；最后一级是香港金管局债务工具中央结算系统（CMU）。
Overseas Custody Structure： Please provide information on all custody institutions between Tier 1 custodian and Central Moneymarkets Unit （CMU）. Tier 1 custodian is the custodian with whom an overseas investor signed a custody contract and opened a bond account. The final custodian is the CMU.
5.中国人民银行上海总部负责对此表格进行解释。
The PBC Shanghai Head Office is responsible for interpretation of this form.
附表2：Schedule 2:
“债券通”境外投资者备案表
Registration Form for Overseas Investors from Bond Connect
（非法人类）
（For Unincorporated Entities）
投资者名称： 代理备案机构：
Name of Entity Registration Agent

盖章/签字（Official Seal/Signature）：
填表说明 Note：
1.表格用中文和英文填写。境外投资者若无中文名的，“投资者名称”可仅填写英文名。
Please fill out this form in both Chinese and English. If an overseas investor has no Chinese name， “Name of Entity” may be filled in English name only.
2.申请机构简介或投资管理人简介包括监管法律、组织结构（含投资职能）等内容。
Brief Introduction or Brief Introduction of Investment Management Company： background on governing law， organizational structure （including investment function）， etc.
3.投资负责人信息须填写债券投资管理人及投资主要负责人的基本情况。
Investment Managers： Please provide basic information about persons responsible for investment in China， i.e.， Head of Investment Management， Head of Dealing Room （Front Office）， Head of Risk Management （Middle Office）， and Head of Settlement （Back Office）.
4.境外托管路径须填写境外投资者通过第一级托管机构到香港金管局债务工具中央结算系统（CMU）间的所有托管机构。其中第一级托管机构是指境外投资者直接签署托管协议开立债券账户的托管机构；最后一级是香港金管局债务工具中央结算系统（CMU）。
Overseas Custody Structure： Please provide information on all custody institutions between Tier 1 custodian and Central Moneymarkets Unit （CMU）. Tier 1 custodian is the custodian with whom an overseas investor signed a custody contract and opened a bond account. The final custodian is the CMU.
5.中国人民银行上海总部负责对此表格进行解释。
The PBC Shanghai Head Office is responsible for interpretation of this form.