What does bond custody mean?

Bond custody refers to the behavior that bond investors entrust their bonds to custodians for creditor's rights registration, management and rights protection based on their trust in bond custody institutions. At present, there are three custodians in the bond custody market, namely, China Securities Depository and Clearing Co., Ltd. (the Central Clearing Company), Inter-bank Market Clearing House Co., Ltd. (the Shanghai Clearing House) and China Securities Depository and Clearing Company (the China Clearing Company).

1. Commercial banks, authorized branches, trust and investment companies, enterprise group finance companies, financial leasing companies, rural commercial banks, urban credit cooperatives, securities companies, fund management companies, funds managed by them, insurance companies, foreign-funded financial institutions and other financial institutions (hereinafter referred to as investors) approved by the financial regulatory authorities can invest in bond assets in China Government Bond Co., Ltd. (hereinafter referred to as the Central Clearing Company).

Two. 1. Bond custody account refers to commercial banks, authorized funds, insurance companies, foreign-funded financial institutions and other financial institutions that can invest in bond assets in People's Republic of China (PRC). They can open bond custody accounts in their own names in China Securities Depository and Clearing Co., Ltd. according to the principle of real-name registration system registration. 2. Only a settlement agent who has the qualification to handle bond settlement agency business or a commercial bank legal person institution that handles bond counter trading business can open a Class A account. Class A account holders can directly handle self-operated bond settlement business and bond settlement agency business through the central bond integrated business system after networking. 3. Financial institutions and their branches that do not have the qualification of bond settlement agency business or bond counter business may open Class B accounts. Class B account holders can directly handle their own bond settlement business through the central bond integrated business system after networking. 4. A fund management company may open bond custody accounts for various funds it manages in the name of funds through custodian banks. The bond custody account opened by the Fund with the Central Clearing Company is a Class B account, and the account opening procedures and related business operations are handled by its custodian bank.