bond buyback refers to a transaction in which the bondholder (the buyback party) sells bonds to the bondbuyer (the reverse repurchase party), and both parties agree that the seller (the buyback party) will buy back the same amount of bonds. Bonds provided by the buyer (reverse repo party) to the buyer at an agreed price at a future date.
bond pledged repo refers to the repurchase party (selling repurchase party and financing party) pledging bonds to the reverse repurchase party (buyer resale party and financing party) to integrate funds, and at the same time, both parties agree to return them to the reverse repurchase party at the agreed repurchase rate in the future. Reverse repurchase refers to the financing behavior of returning the original pledged bonds to the repurchase party. Repurchase refers to the party that provides funds and pledges bonds in bond repurchase transactions; The reverse repurchase party refers to the party that lends money in the bond repurchase transaction and enjoys the bond pledge.
: 1. About bonds
1. The national debt used for the repurchase of national debt must be the national debt issued by the Ministry of Finance that can be listed, circulated and transferred on the Shanghai Stock Exchange. All unlisted treasury bonds shall not be used for treasury bond repurchase transactions. The variety of comprehensive bond repurchase securities is limited to the repurchase of financial bonds, construction bonds, corporate bonds and other bonds listed on the Shanghai Stock Exchange.
2. during the repurchase transaction, the bond settlement was not transferred in the inventory accounts of both parties. It's a guaranteed security. Shanghai Securities Depository and Clearing Corporation shall check the amount of bonds available for mortgage in the financing business of securities companies according to the changes in bond warehousing and trading of securities companies, and compensate financiers for violations.
3. The financing party of the repurchase business shall ensure that the number of standard government bonds (comprehensive bonds) retained and deposited with the Central Depository and Clearing Corporation is equal to the number of repurchased bonds, and mortgage them, otherwise it shall be punished according to the provisions on short selling of government bonds. If the financing party does not have enough mortgage bonds on the trading day, the Shanghai Stock Exchange will freeze the funds included in the transaction on the same day until the inventory is replenished, and the losses caused by this will be borne by the financing party.