There are three main bond trading markets: commercial bank over-the-counter market, exchange bond market, and inter-bank bond market.

1. Cash bond transaction

Cash bond transaction refers to the transaction in which both parties transfer bond ownership at an agreed price. Bonds approved for trading on corresponding trading venues can be traded in spot bonds. Currently, spot trading is available at all trading venues. In 2006, the spot trading volume of the inter-bank bond market was 10.92 trillion yuan.

2. Pledged repurchase

Pledged repurchase is also called closed repurchase. It means that the buyer and seller reach a fund lending agreement according to the agreed interest rate and period in the transaction. The capital investor provides certain bonds as pledge to obtain funds, and pays the principal and corresponding interest to the capital lender on the maturity date. Currently, pledged repurchase transactions are available in both the interbank bond market and the exchange bond market. Pledged repurchase is the transaction type with the largest trading volume. In 2006, the pledged repurchase transaction volume in the inter-bank bond market was 27.28 trillion yuan.

3. Buyout repurchase

Buyout repurchase, also known as open repurchase, means that the bond holder sells a bond and at the same time, The buyer agrees that the seller will repurchase the bond from the buyer at an agreed price on a certain date in the future. Currently, outright repurchase transactions are available in both the interbank bond market and the exchange bond market. Compared with pledged repurchase, the ownership of the underlying bonds in buyout repurchase has been transferred, so pledged repo only has the function of financing, while buyout repo has the functions of both financing and securities lending. However, transactions were not active after the launch of buyout repurchase. In 2006, the volume of outright repurchase transactions in the inter-bank bond market was 0.29 trillion yuan.

4. Forward transaction

Forward transaction means that both parties agree to buy or sell the underlying bond at an agreed price and quantity on a certain date in the future. Forward transactions were launched on June 15, 2005. Currently, forward transactions are only available in the inter-bank bond market. In 2006, the forward trading volume of the inter-bank bond market was 0.07 trillion yuan.

5. Interest rate swaps

RMB interest rate swap transactions refer to the behavior in which both parties agree to exchange cash flow based on an agreed amount of RMB principal within a certain period in the future. One party's cash flow is calculated based on a floating interest rate, and the other party's cash flow is calculated based on a fixed interest rate. Interest rate swaps were launched as a pilot project in February 2006. So far, there are 52 registered institutions, and the total nominal principal amount of transactions in 2006 was 33.97 billion yuan.

6. Bond lending

Bond lending means that the bond borrower uses a certain number of bonds as pledges to borrow the underlying bonds from the bond lender and agrees to do so at a certain date in the future. Bond financing is an act of repaying the borrowed underlying bonds on a certain date and having the bond lender return the corresponding pledge. Bond lending was launched this year and has yet to be traded.