Bond repurchase is divided into pledged repurchase and buyout repurchase.
Pledged repurchase refers to a short-term financial business with a pledge of a bond, by which the financing party (the repurchase party) gets fund from the fund owner (the reverse repurchase party) with a bond as the pledge and at the same time, the parties agree that the repurchase party returns the fund to the reverse repurchase party by calculating at the agreed repurchase rate at a fixed future date, and the reverse repurchase party returns the bond to the repurchase party.
Buyout repurchase refers to transactions that the bondholder (the repurchase party) sells bonds to the bond purchaser (the reverse repurchase party), and the parties agree that the repurchase party buy the same kind of bond with the same amount from the reverse repurchase party at a set price on a fixed future date.
The parties related to bond repurchase shall be members of interbank bond market, and have signed the Pledged Repurchase Agreement in National Inter-bank Bond Market and / or the Buyout Repurchase Agreement in National Inter-bank Bond Market.
Bond repurchase business shall be handled in accordance with the rules of the inter-bank bond market.