On July 3rd, Postal Savings Bank Of China Co.,Ltd. (PSBC), China Citic Bank Corporation Limited (CITIC BANK), and CCXI jointly launched offshore Renminbi bond valuation and index products. This initiative aims to provide a transparent, quantifiable, and comparable pricing reference for the offshore RMB bond market, supporting the high-quality development of RMB internationalization. Key figures including PSBC Chairman Zheng Guoyu, CITIC Bank Vice President Hu Gang, and CCXI International Credit Rating Chairman Yan Yan attended the launch event and delivered speeches. Representatives from Bond Connect Company Limited and over 50 domestic and international financial institutions were also present.
The newly introduced offshore RMB bond valuation product integrates multiple data sources such as market transaction prices and real-time quotes. It establishes a comprehensive, multi-dimensional pricing mechanism through sophisticated model design. The product is supported by a full-cycle valuation monitoring and calibration system to effectively ensure data quality. Statistics indicate that the valuation product currently covers over 90% of the outstanding offshore RMB bonds, providing the market with a fair and credible pricing benchmark to assist investors in efficiently conducting investment research, analysis, and risk management.
Concurrently launched, the offshore RMB bond index product employs a comprehensive "general-specific" framework. Building upon a broad market composite index, it further segments into sector indices for government bonds, financial bonds, and corporate bonds. It also innovatively introduces credit-dimension indices, such as investment-grade bonds and select investment-grade bonds, forming a clear, multi-layered index matrix. This index product can meet the diverse and nuanced needs of different investor types in areas like asset allocation, performance benchmarking, and risk management. Notably, these indices are compiled and managed under a framework aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks and supported by independent verification, adhering to global mainstream regulatory standards and further enhancing the product's international credibility.
Zheng Guoyu stated that the launch of the "Offshore RMB Bond Valuation and Index Products" demonstrates PSBC's commitment to fostering the development of the offshore RMB market and steadfastly serving national strategies. Moving forward, PSBC will, under the guidance of financial regulatory authorities, collaborate closely with CITIC Bank and CCXI, leveraging their respective strengths to continuously improve valuation accuracy and index representativeness. The goal is for these valuation and index products to serve as a bridge connecting onshore and offshore markets, as well as industry and finance, contributing to the steady and sustained progress of RMB internationalization.
Hu Gang expressed that CITIC Bank's participation in co-developing the offshore RMB bond valuation and index products fully reflects the bank's political commitment to its core responsibilities and its proactive, innovative practices. In the future, CITIC Bank will leverage the group's comprehensive advantages in "finance + industry" to serve national strategies across all fronts and at multiple levels. It will deepen its involvement in offshore financial infrastructure development, continuously drive the improvement of the index system and innovation within the product ecosystem, and contribute greater financial strength to the deepening of RMB internationalization and high-quality development.
Yan Yan noted that with the rapid expansion of the offshore RMB bond market, there is an increasingly higher and more urgent demand for multi-layered, sophisticated tools for price discovery, risk management, and asset allocation. Relying on its profound credit research expertise and standardized, independent, professional qualifications, CCXI, in partnership with PSBC and CITIC Bank, launched the offshore RMB bond valuation and index products precisely as a key response to these market demands.
Wang Tong, General Manager of Bond Connect Company Limited, delivered a speech as a special guest. He stated that the introduction of these offshore RMB bond valuation and index products further enhances the pricing infrastructure of the offshore market, improving market transparency and pricing efficiency. Bond Connect Company will continue to play its role as a bridge connecting onshore and offshore markets, working with all parties to advance RMB internationalization.
As RMB internationalization progresses steadily and the Bond Southbound Connect mechanism continues to improve, domestic institutions find it more convenient to participate in the offshore market, and institutional investor engagement is increasing. This product combines the market experience, vast data resources, professional insights, and technical capabilities of PSBC, CITIC Bank, and CCXI. It has received a positive market response upon launch, with several institutions signing letters of intent for cooperation during the release event.
In the next phase, PSBC, CITIC Bank, and CCXI will remain committed to their financial mission, continuously refining the offshore RMB bond valuation and index products. They aim to serve the long-term prosperity and stability of the offshore RMB market and support the high-quality development of RMB internationalization.
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