On August 6, 2026, Shanghai Clearing House (SHCH) supported the Export-Import Bank of China in successfully issuing and registering the first floating-rate financial bond benchmarked on DR001 (the overnight depository institutions repo rate) across China's interbank market. The bond has an issuance size of RMB 2 billion, a 1-year tenor, and an issuance rate of 1.44%.
The issuance features two landmark innovative initiatives:
First, it innovates and optimizes the financial bond issuance mechanism. Based on the highly coordinated infrastructure service system between SHCH and the China Foreign Exchange Trade System (CFETS), the bond introduces a pre-issuance inquiry mechanism under the quotation-based issuance model for negotiable certificates of deposit (NCDs), and sets up a flexible upsizing issuance mechanism, which significantly enhances price discovery efficiency and achieves dynamic and precise matching between the supply and demand scales.
Second, it innovatively adopts DR001 as the benchmark interest rate. SHCH provides life cycle services for bonds, covering issuance and registration, custody and settlement, and bond valuation. The issuance expands the application scenarios of the DR001 benchmark in financial products, and expands the interest rate transmission channel from the money market to the bond market. Meanwhile, this issuance marks the latest practice of domestic floating-rate bonds aligning with the global market norm of using overnight risk-free rates as pricing benchmarks, which will help further elevate the internationalization of RMB asset pricing.
Going forward, SHCH will stay grounded in its mandate as a financial market infrastructure, continue to advance product mechanism innovation and service upgrading, and join hands with all market participants to promote high-quality development of China's interbank bond market.
