Bloomberg and CFETS launch RFQ service for onshore Chinese bond trading

The CIBM-Direct RFQ tool from Bloomberg and the CFETS aims to further facilitate global investors trading onshore Chinese bonds.

Bloomberg and the China Foreign Exchange Trade System (CFETS) have teamed up to expand access to onshore Chinese bonds for investors globally with a new request for quote (RFQ) service.  

The electronic trading tool for the China Interbond market (CIBM) Direct route has launched on Bloomberg Terminal and will allow international investors to trade Chinese bonds with onshore market makers with increased transparency and efficiency.

“China’s bond market continues to present global investors opportunities to diversify their portfolios and achieve higher yields,” said global head of enterprise trading solution at Bloomberg, Nicholas Bean.

“We are seeing growing demand from market participants to do so via electronic means which provides optimal efficiency in cross border execution and settlement processes. CIBM-Direct RFQ is another milestone in an enduring, all-weather partnership between Bloomberg and CFETS. We share the twin goals of improving liquidity onshore while also maximising the reach of China’s fixed income market for investors across the globe.”

Offshore investors can use the service to send RFQs with trade quantities to onshore market makers, which can then send pricing to investors through the Bloomberg Terminal for confirmation via the Bloomberg-CFETS link. The CIBM-Direct RFQ Service will cover all securities traded in the China Interbank Bond Market.

“Despite a backdrop of uncertainty and volatility in global financial markets this year, investment and transaction levels by foreign investors of RMB-denominated bonds have met new records,” said CFETS president, Zhang Yi.

“This service launched by CFETS and Bloomberg today provides an electronic trading option for offshore investors under CIBM-Direct, which will enhance convenience and efficiency for market participants.”

Bloomberg was the first trading platform to offer access to the CIBM-Direct and Bond Connect trading and settlement links through its agreement with the CFETS in January last year. Qualified investors can use Bloomberg Terminal to trade under both initiatives, which aim to open up bond markets in China to investors globally.