Bond collateral repo is the business that securities companies borrow money from customers using standard bonds as collateral, and the amount is offered by the securities company and accepted by the customer. The customer will get back the money on maturity date with the corresponding returns.
Bond collateral repo was launched in December 2008. In May 2009, Guosen Securities Company started this business as a pilot project. In November 2011, more pilot brokers joined.
Now 38 brokers joined this program with a turnover of RMB 2.44 trillion in 2012, 4.52 times of that in 2011. The highest daily outstanding balance reached RMB 26.1 billion and the average daily outstanding balance hit RMB 14.8 billion.