Home / Business

Regulators tighten rules for bond trading to curb risks

By Li Xiang | China Daily | Updated: 2018-01-09 07:25

Ban on informal 'drawer agreements' expected to reduce leverage ratio

China's financial regulators have tightened rules for bond trading, a move that may exert short-term selling pressure on the bond market but will help reduce excessive leverage and curb risks in the country's financial system, analysts said.

The People's Bank of China has issued a regulation in collaboration with the country's banking, securities and insurance regulators that banned financial institutions from engaging in the so-called drawer agreements, a kind of under-the-table deal that enables them to dodge regulatory requirements when it comes to using borrowed money to invest in bonds.

Regulators tighten rules for bond trading to curb risks

Today's Top News

Editor's picks

Most Viewed

Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349