Product Overview

Over-the-counter bond products enable clients to open bonds accounts, participate in bond distribution, and conduct bond transactions through channels of Bank of China Limited. Corresponding services include bond custody and settlement, pledge registration, agency services for interest and principal payments, and account inquiries.

Eligible over-the-counter bonds are those approved by regulatory authorities such as the People's Bank of China for trading via commercial bank counters and held in custody at bond registration, custody, and settlement institutions such as China Central Depository & Clearing Co Ltd and Shanghai Clearing House. Currently, major bond types include bonds issued by Agricultural Development Bank of China, China Development Bank, the Export-Import Bank of China, and local governments, as well as certain bonds with high credit ratings. BOC provides bilateral quotes for hundreds of over-the-counter bonds daily, offering a variety of maturity options.

Over-the-counter bond transactions include spot bond trading and other transaction types approved by the People's Bank of China. Spot transactions are categorized by transaction type into:

Bond Primary Issuance Subscription: Transactions in which clients subscribe to bonds during the primary issuance period.

Bond Reopening Issuance Subscription: Transactions in which clients subscribe to bonds during the reopening issuance period. A bond reopening refers to the issuer's additional issuance of a bond that has already entered the trading phase after its initial issuance. 

Bond Trading: Transactions in which clients buy or sell bonds at BOC's quoted prices during the bond's listed trading period. These trades are settled on a trade-by-trade, real-time basis for both fund clearing and bond settlement.

Trading Hours

Trading hours for this product are from 9:30 am to 3:30 pm on over-the-counter bond market trading days. For transactions conducted at branch counters, trading is also subject to the branch's business hours.

BOC reserves the right to suspend all or part of trading activities for this product under circumstances including, but not limited to: major international market holidays, national statutory holidays, adjusted market closure days, trading suspension days stipulated by regulators, force majeure events, international political, economic, or emergency events, communication failures, system failures, power outages, market trading halts, financial crises, or changes in national policies.

Trading Currency and Unit

Trading currencies include the renminbi and other currencies permitted by the People's Bank of China. The specific currency is subject to the actual transaction currency of BOC.

The price is quoted in RMB per 100 yuan of face value. Bond elements, such as clean price, accrued interest, yield to maturity, settlement price, and settlement amount, are displayed on each transaction channel.

Trading Quotes

Quotes for this product are determined by comprehensively considering factors such as the interbank bond market price trends, market liquidity, and trading positions. BOC may provide multiple quotes per trading day and reserves the right to adjust quotes at any time based on market conditions.

Bond buy-and-sell transactions primarily use bilateral quotes, with inquiry quotes as a supplementary method.

Bilateral Quotes include client buy clean price, client sell clean price, client buy full price, client sell full price, accrued interest, client buy yield to maturity, and client sell yield to maturity.

Inquiry Quotes involve eligible clients initiating a unilateral inquiry with specified transaction volumes for a particular bond through channels provided by BOC. Upon receipt of a specific quote from a BOC trader, the transaction is executed after secondary confirmation by the client.

The quotes and settlement amounts for this product are subject to the transaction confirmation results displayed to the client by BOC or the transaction voucher provided at the branch counter.

Relevant Definitions

Client Buy Clean Price: The clean price at which the client buys bonds from BOC.

Client Sell Clean Price: The clean price at which the client sells bonds to BOC.

Clean Price: The bond price excluding accrued interest.

Accrued Interest: The accumulated interest, calculated per 100 yuan of face value, payable by the bond issuer to the bondholder for the period from the last interest payment date (or interest accrual date) to the settlement date.

Full Price = Clean Price + Accrued Interest.

Client Buy Yield to Maturity: The annualized return rate a client would achieve by purchasing the bond at the current client buy clean price and holding it until maturity.

Client Sell Yield to Maturity (Bank Buy Yield to Maturity): The annualized return rate BOC would achieve by purchasing the bond from the client at the current client sell clean price and holding it until maturity.

Interest Accrual Date: The date from which the bond interest begins to accrue.

Interest Payment Date: The date on which the bond issuer pays interest to bond investors.

Bond Maturity and Redemption Date: The date on which the bond issuer repays the principal and pays the final interest installment.

Risk Disclosure

Before proceeding with this service, please carefully read the risk disclosure statement to ensure full understanding and acceptance of the terms and associated risks. Risks faced by clients may include, but are not limited to, policy risk, market risk, and liquidity risk.

The above content is for reference only. Specific product information is subject to BOC's official product documents.