BEIJING - The People's Bank of China (PBOC), the central bank, issued a notice on Tuesday regulating overseas investment in the country's interbank market.

Institutional investors, including foreign central banks or monetary authorities, international financial institutions and sovereign wealth funds, are now required to register with the PBOC before investing in the interbank market.

After registration, investors can trade bonds in spot and forward markets, conduct interest rate swaps, and trade forward rate agreements. They will be free to decide on the size of their investment.

"Overseas institutions should be long-term investors and conduct business in China's interbank market based on the reasonable need to preserve and increase the value of assets," said the PBOC.