Bloomberg, together with the China Foreign Exchange Trade System (National Interbank Funding Center) (“CFETS”), today announced the launch of the Request-for-Quote (RFQ) service for CIBM-Direct on the Bloomberg Terminal. This new electronic trading service will bring greater efficiency and market transparency to facilitate global investor trading of Chinese bonds with onshore market makers, through the connection between Bloomberg and CFETS. The Bloomberg Terminal is currently one of the major offshore access points to China’s $14 trillion bond market.

CIBM-Direct is a key route for international investors to access the China Interbank Bond Market and trade onshore bonds directly. With the CIBM-Direct RFQ service, offshore investors can send request-for-quotes with trade quantities to onshore market makers via the Bloomberg Terminal. Market makers will respond with executable pricing on the CFETS platform, which is sent to investors via the Bloomberg Terminal for confirmation through the Bloomberg-CFETS link. Investors can then confirm the trade on the Bloomberg Terminal. This service covers all securities traded in the China Interbank Bond Market.

“Despite a backdrop of uncertainty and volatility in global financial markets this year, investment and transaction levels by foreign investors of RMB-denominated bonds have met new records,” said Zhang Yi, President of CFETS. “This service launched by CFETS and Bloomberg today provides an electronic trading option for offshore investors under CIBM-Direct, which will enhance convenience and efficiency for market participants. We are committed to building the primary trading platform for CNY and related products and providing important market infrastructure for the robust opening-up of China’s bond market.”

“China’s bond market continues to present global investors opportunities to diversify their portfolios and achieve higher yields,” said Nicholas Bean, Global Head of Enterprise Trading Solution (ETS) at Bloomberg. “We are seeing growing demand from market participants to do so via electronic means which provides optimal efficiency in cross border execution and settlement processes. CIBM-Direct RFQ is another milestone in an enduring, all-weather partnership between Bloomberg and CFETS. We share the twin goals of improving liquidity onshore while also maximizing the reach of China’s fixed income market for investors across the globe.”

Bloomberg is the first to offer investors an electronic solution to access CIBM-Direct since 2019 and currently aggregates all live streaming liquidity from dealers on CFETS, facilitating global investor access to China’s bond market. As a liquidity information provider for offshore investors, Bloomberg offers investors comprehensive fixed income analytical tools, in addition to a full suite of enterprise products, serving as the primary platform to facilitate the inflow of foreign investment into China’s bond market.

Source: Bloomberg