Recently, the People's Bank of China and the Ministry of Labor and Social Security jointly issued the Notice on Relevant Matters Concerning the Entry of Enterprise Annuity Funds into the National Inter-bank Bond Market, and the enterprise annuity funds were allowed to enter the national inter-bank bond market for investment and trading.
insiders believe that the inter-bank bond market is taking this opportunity to usher in the further growth of institutional investors.
Put forward clear requirements in many aspects
The enterprise annuity fund refers to the enterprise supplementary endowment insurance fund formed according to the funds raised by the enterprise annuity plan formulated according to law and its investment and operation income. China's enterprise annuity system has developed rapidly since its establishment, and the accumulated enterprise annuity fund is nearly 1 billion yuan, so the demand for safe and rational use of funds for enterprise annuity fund is very urgent.
The Notice issued this time puts forward clear requirements for enterprise annuity funds mainly from the institutional arrangements for participating in inter-bank bond market transactions and the conditions, procedures and transaction management for opening bond custody accounts.
according to the notice, enterprise annuity funds can trade and settle bonds directly or through settlement agents. Among them, for direct bond trading and settlement, the trustee shall entrust the investment manager of the enterprise annuity fund and the custodian to apply to the National Interbank Funding Center and the China Government Securities Depository and Clearing Co., Ltd. for bond trading networking procedures and opening bond custody accounts respectively; When the enterprise annuity fund conducts bond trading and settlement through a settlement agent, after the investment manager and the settlement agent sign a bond settlement agency agreement, the settlement agent should apply to the Central Clearing Company for opening a bond custody account on behalf of the enterprise annuity fund. The names of the accounts opened by the two methods are the same, both of which are "XX combination of enterprise annuity plan of custodian XX company".
The Notice also stipulates that the bond custody account shall be opened according to each portfolio managed by the investment manager of the enterprise annuity fund. A single enterprise annuity plan shall not open more than 1 bond custody accounts. Bond transactions between different enterprise annuity funds and other assets managed by the same investment manager are not allowed; Different portfolios of the same enterprise annuity fund may not trade bonds with each other.
The Circular also requires that the enterprise annuity fund custodian and investment manager shall submit semi-annual and annual written reports on the investment and trading of enterprise annuity fund bonds to the Ministry of Labor and Social Security and the People's Bank of China before July 1th of each year and January 2th of the following year.
It is conducive to improving the efficiency of market transactions
From the international experience, the bond market has always been a very important investment place for enterprise annuity funds. Bonds and related financial instruments are important assets to achieve their risk-return goals and the main direction of asset allocation for enterprise annuity funds. In China, the inter-bank bond market has made remarkable achievements in the past decade: by the end of 26, the stock of tradable bonds was 8.4 trillion yuan; In 26, the transaction volume was 38.39 trillion yuan; Nearly6,5 institutional investors; Tradeable varieties include government bonds, central bank bills, financial bonds, corporate bonds, short-term corporate financing bonds, asset-backed securities and other tools. The breadth and depth of the inter-bank bond market and its trading mode mainly based on OTC inquiry are very suitable for the operation of enterprise annuity funds.
insiders believe that the issuance of the Notice has laid an institutional foundation for enterprise annuity funds to invest and trade bonds safely and orderly in the inter-bank bond market. The entry of enterprise annuity fund into the inter-bank bond market is conducive to broadening its investment channels and promoting the preservation and appreciation of assets; The entry of enterprise annuity funds has increased the types of investors in the inter-bank bond market, which will promote the differentiation and diversification of market demand and improve the efficiency of market transactions.
In the next step, the People's Bank of China will take further measures, introduce supporting policies, introduce various investors such as housing provident fund and investment and wealth management tools, enrich and expand the ranks of investors in the inter-bank bond market, and promote the rapid development of the market.