Regulatory Use of the LEI > China
The People’s Bank of China (PBOC) published a roadmap for the implementation of LEIs in China from 2020 to 2022, by which point LEIs will be required for securities and derivatives trading, risk monitoring, regulatory reporting, listed company supervision and the digital yuan ecosystem.
A roadmap for China’s implementation of LEIs was jointly released in 2020 by the People’s Bank of China (PBOC), China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and State Administration of Foreign Exchange.
It outlines key milestones for the implementation of LEIs in China from 2020 to 2022 as part of the ‘Belt and Road Initiative’ initiative, and will require LEI usage to bring China’s financial system in line with international standards.
The milestones include:
LEI volume up to 30,000:
Proposed applications for e.g.:
Institute a mechanism for:
LEI volume up to 50,000:
Proposed applications for e.g.:
Launch and operate:
LEI volume up to 100,000:
Proposed applications for e.g.:
Institute a mechanism for:
2020 | 2021 | 2022 | |
| LEI volume | 30,000 | 50,000 | 100,000 |
| Entities requiring LEIs | All financial institutions Member institutions of financial infrastructure and industry associations Listed companies in China
| More coverage among importers and exporters Trading enterprises Non-financial enterprises involved in cross-border transactions
| Still more non-financial enterprises involved in cross-border transactions
|
| Proposed application examples | RMB cross-border payments Digital RMB cross-border business Qualified foreign institutional investor (QFII) and RMB qualified foreign institutional investor (RQFII) access Derivatives trading Securities trading Listed company supervision
| The financial market transaction reporting system Credit rating Application of special institutional codes by overseas institutions.
| Digital identification of cross-border legal persons.
|
| Institute a mechanism for | Mapping and updating LEI with the codes of financial institutions Unified social credit codes Codes of information systems related to major financial infrastructure
| Cross-border legal person information service and digital authentication platform to provide value-added LEI-based data services to financial management departments, financial infrastructure, financial industry associations and financial institutions
| A commercially sustainable LEI operation.
|
| Jurisdiction | Rule | Master/Base Regulation | Effective Date | Required vs. Requested | Status | Link |
| China | Order of the People’s Bank of China (No. 3 [2017] The Measures for the Registration of Pledged receivables as amended and issued by the People’s Bank of China | 2017 | Requested | Approved | Link | |
| China | General administration of customs notice no. 56 of 2017 | 2018 | Requested | Approved | ||
| China | Notice on Provision of Legal Entity Identifiers by Institutional Investors Registering to Enter Inter-Bank Bond Market | 2019 | Requested | Approved | ||
| China | Interbank Market Metadata (JR/T 0065-2019) and Interbank Market Information Exchange Protocol (JR/T 0066.1-2019) | 2019 | Requested | Approved | Link | |
| China | Statistics System of External Financial Asset/Liability and Trading | 2019 | Requested | Approved | Link | |
| China | Guideline on Operation of Securities Accounts | Guideline on Operation of Securities Accounts | 2018 | Requested | Approved | Link |
| China | Notice on Reporting of Legal Entity Identifiers by Bond Issuers | Notice on Reporting of Legal Entity Identifiers by Bond Issuers | 2019 | Requested | Approved | Link |
| China | Order No. 5[2019] of the People’s Bank of China, the National Development and Reform Commission, the Ministry of Finance and the China Securities Regulatory Commission | Interim Measures for the Administration of Credit Rating Industry | 2019 | Required | Approved | Link |
For global LEI regulations, visit Regulatory Use of the LEI.
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