Second, specifically:
1. A foreign bond refers to a bond issued by a borrower of a certain country in a country other than its own country and denominated in the currency of that country. Its characteristic is that the issuer of bonds is in one country, and the face value currency and issuance market of bonds belong to another country.
2, including:
1) yankee bonds is a bond issued by a non-US issuer in the US bond market to absorb US dollar funds.
2) samurai bonds are bonds issued by non-Japanese issuers in the Japanese bond market, with a face value of Japanese yen.
3) Panda bond is the first RMB bond issued by international multilateral financial institutions in China.
4) Swiss franc foreign bonds are bonds issued by foreign investors on the Swiss stock exchange, with a face value of francs.
5) Deutsche Mark foreign bonds are bonds issued by non-German issuers in the German bond market with a face value of Deutsche Mark.
Third, how to buy foreign bonds:
According to the Interim Measures for the Administration of Overseas Financial Management of Commercial Banks on behalf of Clients issued by the Central Bank, the China Banking Regulatory Commission and the Foreign Exchange Bureau,
This process is divided into five steps:
1. Step 1, the commercial bank applies to the CBRC for the qualification of overseas wealth management business on behalf of customers.
2. In the second step, the commercial bank applies to the foreign exchange bureau for foreign exchange purchase quota for overseas financial management on behalf of customers.
3. Third, within the scope of foreign exchange purchase quota, commercial banks issue overseas financial products denominated in RMB to domestic residents.
4. Step 4: Domestic residents subscribe for these overseas financial products in RMB within the investment plan announced by commercial banks, and the raised RMB funds are uniformly purchased by commercial banks into foreign exchange, and then remitted abroad for investment according to the disclosed investment plan.
5. Step 5: After the principal and income from investing in overseas financial products are remitted back to China, they will be converted into RMB by commercial banks and paid to domestic residents.
Four. Income from purchasing foreign bonds:
Overseas financial products that are allowed to invest will mainly be fixed-income products such as bonds and deposits, including money market products such as capital preservation products, overseas bonds, bank bills and large negotiable certificates of deposit sold by overseas financial institutions. The return on investment of these wealth management products is generally higher than that of similar domestic products.