The People's Bank of China and the Administration of Foreign Exchange recently jointly issued the Provisions on the Administration of Funds of Foreign Institutional Investors Investing in China's Bond Market (hereinafter referred to as the "Provisions"), which improved the fund management of foreign institutional investors investing in China's bond market and further expanded the two-way opening of the financial market. Recently, many foreign banks, insurance and securities institutions have increased their investment in China, and the investment and financing convenience in capital markets such as bonds and stocks has continued to improve. The insiders said that China has entered a deeper level of two-way financial opening. At the policy level, it will continue to improve the cross-border investment and financing system, enrich the exchange market product system, and further improve the convenience of overseas issuers and investors to participate in the stock and bond markets of the exchange. Institutional opening in depth In order to further expand the two-way opening of the financial market, the People's Bank of China and the SAFE jointly issued regulations a few days ago, in which new measures further expanded the foreign exchange hedging channels for overseas institutional investors and lifted the number of counterparties for over-the-counter transactions, optimized the management of matching outward and inward currencies and encouraged long-term investment in the Chinese bond market. "On the whole, the promulgation of the regulations improves and clarifies the capital management requirements for foreign institutional investors to invest in China's bond market, which is conducive to improving the convenience of foreign investment in China's bond market in terms of capital management and further boosting the enthusiasm of foreign investors to participate in China's bond market." Feng Lin, senior analyst of the Research and Development Department of Oriental JC said. In recent years, China has continued to improve the openness of the financial market, including abolishing the restrictions on the proportion of foreign shares held by foreign investors, relaxing the conditions for foreign institutions and business access, expanding the business scope of foreign institutions, optimizing the regulatory rules for foreign institutions and simplifying the administrative licensing process. A total of 34 new measures have been announced for three rounds of opening up, effectively boosting the enthusiasm of foreign institutions to invest in China's financial market. On this basis, a new pattern of comprehensive opening up in a wider range, broader fields and at a deeper level is taking shape at an accelerated pace. The People's Bank of China said that it would promote the transformation of the financial market to a comprehensive system oriented opening and improve the liquidity of RMB financial assets. "We will continue to promote reform and opening up, steadily expand the institutional opening up of rules, regulations, management, standards, etc. in the financial sector. We will further improve the management system of pre access national treatment plus negative list, strive to create a market-oriented, rule of law, international first-class business environment, strengthen the protection of property rights, especially intellectual property rights, and enhance investment confidence in the financial market." Yi Gang, governor of the Central Bank, pointed out that. "Different from the previous factor flow opening, institutional opening is an opening based on regulation, rules and standards, which is comprehensive, systematic and stable, and is a higher level of opening." Tu Yonghong, deputy director of the International Monetary Research Institute of Renmin University of China, said. The layout of foreign capital in multiple fields accelerated Allianz Insurance Group recently acquired 3.33% of the equity of JD Allianz Property&Casualty Insurance with a bid price of 57.5 million yuan, and the shareholding ratio increased to 53.33%. The wholly-owned subsidiary of Agricultural Bank of China, Agricultural Bank of China Wealth Management, received the reply from the CBRC a few days ago, and was approved to cooperate with Paris Asset Management Holding Company in France to establish a Sino foreign joint venture wealth management company, with the contribution ratio of 49% and 51% respectively. In addition, as disclosed by the CSRC, by the beginning of November 2022, JPMorgan Chase, Goldman Sachs, Nomura and UBS had