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Primary
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NCD Subscription

  • Primary Information
    • Onshore
  • NCD Subscription

NCD Primary Subscription Guidebook for Bond Connect Investors

Preamble

Bond Connect scheme supports the direct subscription of the primary issuance of bonds, including NCD, in the China Interbank Bond Market by investors registered with the scheme (“Bond Connect Investors”). To facilitate the NCD subscription process, China Foreign Exchange Trade System (“CFETS”) and Bond Connect Company Limited (“BCCL”) launch the NCD Primary Subscription Service (“Service”) to Bond Connect Investors. For other types of bonds, Bond Connect Investors can contact the issuers and underwriters for subscription, while further guidance may be provided if there is further arrangement.

1. Service Activation

Bond Connect Investors can apply for the Service by filing the Bond Connect NCD Primary Subscription Service Activation Form (NCD FORM 1) to: -
Upon the receipt of NCD FORM 1, BCCL and CFETS will endeavor to provide feedback to Bond Connect Investors within three business days and send a written confirmation to those who successfully activate the Service via email.

Bond Connect Investors are recommended to inform their custodians of the participation in NCD primary subscription in advance for making their own settlement arrangement.

2. Issuance and Subscription

NCD issuance in the China Interbank Bond Market is conducted through the Certificate of Deposit Issuance System operated by CFETS (“CDIS”). The clearing and settlement are supported by Shanghai Clearing House, Hong Kong Monetary Authority Central Moneymarkets Unit, and the Cross-Border Interbank Payment System (“CIPS”). Bond Connect Investors should be aware that the issuance, subscription, and settlement process are subject to the rules and operating procedures of the respective financial infrastructure providers.

2.1. Announcement (T-1 Day)

During 9:30am to 4:30pm of T-1 day, issuers can initiate a new NCD issuance by inputting the term sheet into the CDIS.

Bond Connect Investors can access the latest NCD issuance information in English disseminated by certain issuers through the Primary Market Information Platform of BCCL. As a prerequisite for subscription, Bond Connect Investors should contact the issuers and request to be added into their white list. Bond Connect Investors may wish to remind the issuers of their naming convention in the CDIS with a suffix of “-bc” for the purpose of white list maintenance.

2.2. Subscription (T Day)

Bond Connect Investors can download the Bond Connect NCD Primary Subscription Form (NCD FORM 2) from the website of BCCL or CFETS, fill in properly with duly authorized signatures, and submit by 3:30pm of T Day to: - The order from investors will be uploaded to the CDIS and accessible to the issuers. Upon issuers’ confirmation of allotment, Bond Connect Investors who have successfully subscribed to the new issue will receive a payment notice via email (“Payment Notice”) from BCCL or CFETS in accordance with the submission channel used.

2.3. Settlement (T+1 Day)

Issuers’ CIPS Account Number or Bank Identifier Code (“BIC”) can be found in the Payment Notice. Bond Connect Investors should remit the proceeds to the issuers through CIPS before 2:00pm of T+1 Day. The issuers will confirm in the CDIS upon the receipt of payments.

Bond Connect Investors should also direct their custodian banks to send settlement instructions in free of payment (“FOP”) mode before 4:00pm of T+1 Day. After the settlement details are matched, the allotted NCD will be credited to the designated custody accounts.

3. Contact Information

Should you have any enquiries, please contact BCCL or CFETS: - Note : - This note of guidance is provided as a general guideline, and has no binding effect to CFETS or BCCL. CFETS and BCCL retain the right to change, modify or update this note of guidance. Bond Connect Investors should beware that they are using the most updated version.


  Download: NCD Primary Subscription Guidebook