[Introduction] [Application Procedure] [Product Information] [Risk Disclosure]
Over-the-Counter Bond Services
Retail bond investment, referred to as the Over-the-Counter (OTC) bond services within China’s Interbank Bond Market (hereinafter referred to as “OTC bond services”), encompasses IB's offerings wherein we facilitate bond account establishment, bond distribution, and bond trading services for individual investors via our branch network, mobile banking, and personal online banking platforms. Complementary to these services are bond custody and settlement, pledge registration, coupon and principal payment agency services, and related inquiries. Importantly, IB does not assume any liability for profit or loss resulting from clients' bond trading activities. Currently, our OTC bond services include the distribution of book-entry treasury bonds, policy bank bonds, and local government bonds. Over the years, IB has been committed to providing a stable, comprehensive, and convenient bond investment platform for our clientele, powered by advanced systems, impeccable service, a diverse bond portfolio, and varied trading channels.
Apply for a debit card⇒ Select the account-opening channel (Counter service, Online banking, Mobile banking, or "Money Manager" App) ⇒ Undergo risk assessment and sign service agreement ⇒ Establish a bond custody account ⇒ Engage in bond trading upon successful account opening.
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Over-the-Counter Bond Services: Product Information |
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Bond Type |
Book-entry Treasury Bond |
Policy Bank Bond |
Local Government Bond (LGB) |
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Bond Tenor |
1 to 10 years |
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Trading Currency & Unit |
The trading currency for OTC bond services is RMB. Quotations are made in "Yuan/100 Yuan face value," accurate to two decimal places. Settlements are made in Yuan, precise to two decimal places. |
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Subscription Threshold |
100 Yuan face value |
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Additional Investment Threshold |
Multiples of 100 Yuan face value |
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Trading Hours |
Weekdays 10:00-15:30 (excluding public holidays and IB announced market closures) |
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Account Opening/Closure Hours |
Weekdays 0:00-24:00 (excluding public holidays and IB announced market closures) |
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Fee Structure |
The associated fees for OTC bond services involved are: 1. Account opening fee (currently waived); 2. Custody transfer fee, non-transaction transfer fee (fee exempted). IB retains the right to make adjustments based on relevant policies. All fees arising from customer trading activities should align with the latest IB Service Price Lists and most recent fee adjustment notices, available at http://www.cib.com.cn. |
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Trading Channels |
Mobile Banking, Online Banking, Counter Service, "Wealth Master" Client App |
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Sales Area Restrictions During Subscription |
None |
None |
Sold only at branches within the jurisdiction of the local government |
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Secondary Market Trading |
Dynamic market-making supply and demand system, two-way price quotation |
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Bond Custody Entity |
China Central Depository & Clearing Co., Ltd. |
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Interest Payment Rules |
Bond issuers will pay interest to customers through IB before the market opens on the interest payment day. If it coincides with a holiday, the payment will automatically be deferred to the next business day. |
Bond issuers will pay interest to customers through IB before the market opens on the interest payment day. For non-national development bonds, if a holiday coincides, the payment is automatically deferred to the next business day. For national development bonds, payments are completed on the interest/principal payment day. |
Bond issuers will pay interest to customers through IB before the market opens on the interest payment day. If it coincides with a holiday, the payment will automatically be deferred to the next business |
In bond investment transactions, clients can opt to hold the bond until maturity to garner fixed-rate returns or pursue profit margins through trading activities. In the latter scenario, bonds, being the object of transaction, are exposed to macroeconomic swings, legal risk, market risk, liquidity risk, force majeure risk, and others. Price volatility may lead to potential capital losses for the client. It's imperative for clients to cautiously evaluate their inherent risks based on their financial standing, expertise, and risk tolerance, and determine the suitability of engaging in OTC bond transactions.
All bond investments involve some degree of risk, necessitating prudent investment considerations.