Bond Connect

Bond Connect is a market access scheme that is established to allow Mainland China and overseas investors to trade in each other’s bond markets through a linkage between Mainland China and Hong Kong market infrastructures. There is no quota requirement. Northbound trading (that is, foreign investors investing in bonds traded on the China Interbank Bond Market (CIBM)) began on 3rd July 2017, while Southbound trading will be explored at a later stage. But investors cannot invest in derivative products (IRS, FRA, bond forwards etc.) through Bond Connect.


China Bank and Insurance Regulatory Commission (CBIRC) is a public institution directly under the State Council. Its main duties include supervising the banking and insurance industry in accordance with laws and regulations, maintaining the legal and stable operation of the banking and insurance industry, and protecting legal rights and interests of financial market consumers. Banks, insurance companies and trust companies are the main institutions regulated by CBIRC.

CIBM Direct

CIBM Direct launched in February 2016, foreign institutional investors are given quota-free access to the Chinese Interbank Bond Market (CIBM). Through this scheme, global investors can invest in treasury bonds, local government bonds, central bank bill, financial bonds, corporate bonds, ABS, as well as a variety of derivative products such as IRS (Interest rate swap), FRA (Forward rate agreement), bond forwards, etc. There is no quota limit, but a global investor does need to register themselves with People’s Bank of China (China’s central bank) and State Administration of Foreign Exchange through a Bond Settlement Agent.


China Securities Regulatory Commission (CSRC) is a public institution directly under the State Council. CSRC performs a unified regulatory function, according to relevant laws and regulations, over the securities and futures market of China. It aims to maintain orderly and lawful operations of the securities and futures market. Fund management companies, Securities companies, Private fund managers, Futures companies are the main institutions regulated by CSRC.


FMC stands for Fund Management Company, an FMC allows asset management firms to access China’s retail market. Since April 2020, foreign asset managers have been allowed to take 100% ownership of the domestic FMC.


The People’s Bank of China (PBOC) is the central bank of the People’s Republic of China. Under the leadership of the State Council, PBOC is responsible for formulating and implementing monetary policies, preventing and resolving financial risks, maintaining financial stability and regulating the inter-bank market.


PFM stands for Private Fund Manager. In China, a PFM licence allows foreign managers to develop and sell funds investing in onshore assets to domestic qualified investors.


Qualified Domestic Limited Partner (QDLP) scheme e were established in Shanghai in 2012 , QDLP is a regional scheme facilitating global and domestic asset managers to raise funds from qualified Chinese investors. The total quota of this scheme has been built up to USD 5 billion over the years.


QFII (Qualified Foreign Institutional Investors), which is a program that allows foreign institutional investors to apply for the license in order to trade RMB denominated securities. RQFII (Renminbi Qualified Foreign Institutional Investors), which is regarded as a extended program of QFII, it allows foreign institutional investors to apply for the license to invest its offshore renminbi funds in the Chinese onshore securities markets. At present, qualified investors can invest in stocks and bonds traded on stock exchanges, fixed-income products traded in the China interbank bond market, stock index futures and other financial instruments approved by the China Securities Regulatory Commission (CSRC). Now, the investment quota limitation of both programs has been removed. On the last day of Jan 2019, the China Securities Regulatory Commission (CSRC) published draft rules that would combine QFII and RQFII.


Qualified Foreign Limited Partner (“QFLP”) enables qualified foreign investors to set up a private equity fund (in the form of a limited partnership or a limited liability company) with qualified domestic investors (acting as the general partner). At present, the pilot areas that has launched QFLP program include Shanghai, Beijing, Chongqing, Tianjin, Shenzhen, Qingdao, Guizhou, Pingtan and Zhuhai.


State Administration of Foreign Exchange (SAFE) is responsible for the supervision and management of the foreign exchange market of China. The responsibilities of SAFE include: monitor and analyse the balance of payments, fund remittance and cross-border capital flows, to maintain the stability of foreign exchange market.

Stock Connect

Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect between Mainland China and Hong Kong provide access to China’s A-share markets for foreign investors. The Shanghai-Hong Kong Stock Connect was formally launched in November 2014 and the Shenzhen-Hong Kong Stock Connect was officially launched in December 2016. However, HK Stock Connect programs provide a limited investable universe. Additionally, there is no quota limitation for single institution to in invest in China A-Shares, but there is a daily up limit of total capital flow between HK and Mainland China, but daily buying limit is high enough and won’t cause concern to individual institutions in normal circumstance.

National Social Security Fund (NSSF)

National Social Security Fund: established in 2000, the National Social Security Fund (NSSF) is a government-run investment fund established primarily to provide a reserve of funds for China’s social security system. The fund is managed by the National Council for Social Security Fund.

Asset Management Association of China (AMAC)

Established on June 6th 2012, the Asset Management Association of China (AMAC) is a self-regulatory organization that represents the mutual fund industry of China. AMAC actively fulfil the responsibilities entrusted by the new “Fund Law”, devoted to self-regulation of the industry and promoting the innovation and development of the industry. AMAC is subject to the guidance, supervision and administration of China Securities Regulatory Commission (CSRC) and the Ministry of Civil Affairs.

STAR market

STAR Market, which is the shorthand of the Sci-Tech Innovation Board, is a new trading platform in the Chinese capital market with the registration-based system for listed companies. China Securities Regulatory Commission (CSRC) officially launched the new STAR market on 13th June 2019 and began trading on 22nd July 2019 with 25 listed companies.STAR Market is regarded as the Chinese version of Nasdaq, it was founded to meet the needs of the listing of scientific and technological innovation enterprises in China.


NEEQ Market, which is also known as the New Third Board Market, is the OTC market approved by the State Council of China. The National Equities Exchange and Quotation (NEEQ) was established in January 2013, the establishment of the New Third Board is mainly for high-tech, high-growth, high-innovation enterprises in the early days of the establishment of an efficient financing platform

China Financial Futures Exchange (CFFEX)

China Financial Futures Exchange Co. Ltd. (CFFEX), established with the approval of the State Council of the People’s Republic of China and the China Securities Regulatory Commission (CSRC), is an incorporated exchange specializing in providing trading and clearing services for financial futures, options and other derivatives.

Commodity Futures Exchange

There are three regulated commodity futures exchanges in China, including the Shanghai Futures Exchange (SHFE), Dalian Commodities Exchange (DCE) and Zhengzhou Commodities Exchange (ZCE)


A wholly foreign-owned enterprise (WFOE) is a common investment vehicle for mainland China-based business wherein foreign parties (individuals or corporate entities) can incorporate a foreign-owned limited liability company. The unique feature of a WFOE is that involvement of a mainland Chinese investor is not required, unlike most other investment vehicles (most notably, a sino-foreign joint venture).