Parking Mainland Funds in Treasury Bond Reverse Repos

Number: P-109

Published: Not specified

Pages: 3

Source filename: 大陸資金停泊逆回購.pdf

Original file: Open file

Document Text

Mainland treasury bond reverse repos

Hello. In mainland China, the cash portion can be used to buy treasury bond reverse repos. In this market, an individual lends out funds through the treasury bond repo market and earns fixed interest income. The repo party, or borrower, uses its treasury bonds as collateral, receives the loan, and repays principal and interest at maturity.
Treasury bond reverse repos have lock-up periods and can only be traded during market hours on trading days. You can choose the lending term based on when you need to use the funds. When lending out the funds, the interface shows when the funds become usable and when they can be withdrawn. The screenshots below show the operating interface.
The transaction fee for treasury bond reverse repos is generally one hundred-thousandth. If the amount is large, you can ask the brokerage to adjust the commission, potentially down to one millionth. Fees are settled daily, and purchases must be made in integer multiples of 1,000.

Number: P-109

Published: Not specified

Pages: 3

Source filename: 大陸資金停泊逆回購.pdf

Original file: Open file

Mainland treasury bond reverse repos

Hello. In mainland China, the cash portion can be used to buy treasury bond reverse repos. In this market, an individual lends out funds through the treasury bond repo market and earns fixed interest income. The repo party, or borrower, uses its treasury bonds as collateral, receives the loan, and repays principal and interest at maturity.
Treasury bond reverse repos have lock-up periods and can only be traded during market hours on trading days. You can choose the lending term based on when you need to use the funds. When lending out the funds, the interface shows when the funds become usable and when they can be withdrawn. The screenshots below show the operating interface.
The transaction fee for treasury bond reverse repos is generally one hundred-thousandth. If the amount is large, you can ask the brokerage to adjust the commission, potentially down to one millionth. Fees are settled daily, and purchases must be made in integer multiples of 1,000.