Centralized commercial paper trading platform opens in Shanghai

China launched a nationwide platform for centralized commercial paper trading on Thursday in Shanghai, a move to enhance transparency, efficiency and regulatory standards in the fast-expanding market.

Shanghai Commercial Paper Exchange Corp Ltd, initiated and supervised by the People's Bank of China, the central bank, adds to existing financial infrastructure that serves increasing market demand, said Pan Gongsheng, deputy governor of the central bank.

Financial market infrastructure is critical to secure the safe and efficient operation of the market. Compared with that of other subdivisions, infrastructure in the commercial paper market in China relatively lagged behind, which affected the efficiency of resource allocation and hindered the monitoring and prevention of risks, said Pan.