The People’s Bank of China and the Ministry of Finance have promulgated the Interim Measures for the Administration of Issuance of Overseas Institutional Bonds in the National Inter-bank Bond Market, The Paper reported.

The measures provide a clear guide for overseas lenders to issue RMB bonds in China, meaning that the Chinese bond market has taken an important step toward opening up.

It essentially clarifies that overseas financial institutions shall meet certain conditions before they issue bonds in China. For example, the actual paid capital of the company should be no less than 10 billion yuan (US$1.46 billion) or equivalent currency.

The company is required to have seen a profit over the last three years, shown financial stability and good credit, as well as good corporate governance and a sound risk management system.

The company should also have bond issuance experience and good debt solvency, and be subjected to effective supervision by the financial regulatory authority of the country or region where it is located.