男友太凶猛1v1高h,大地资源在线资源免费观看 ,人妻少妇精品视频二区,极度sm残忍bdsm变态

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

China integrates bond market trading

By Zhou Lanxu and Chen Jia | China Daily | Updated: 2020-07-21 07:29
Share
Share - WeChat
A teller counts cash at a bank branch in Hangzhou, capital of East China's Zhejiang province. [Photo by Hu Jianhuan/For China Daily]

China has taken a major step to integrate its bond markets by launching a connect program, a move that will improve market efficiency and facilitate foreign investment, experts said on Monday.

The People's Bank of China, the central bank, said on Sunday that the nation will embark on an infrastructure connection mechanism between the interbank and exchange bond markets, whereby qualified investors from either market will be allowed to trade bonds listed on the other one.

The mechanism aims to liberalize cross-market capital flow to form a unified market and same trading prices, so as to facilitate monetary policy transmission and strengthen the capacity of the bond markets in serving the real economy, a PBOC statement said.

Zhang Xu, an analyst with Everbright Securities, said that the bond connect mechanism will simplify the procedures for institutional investors of opening accounts, trading, clearing and settlement, facilitating cross-market investment and therefore free capital flow across markets.

"Overseas investment institutions can also enjoy the convenience, which will make the onshore bond market more attractive and further promote the internationalization of the Chinese yuan," said Zhang.

Policy and commercial banks, including foreign-invested banks operating in China, will be allowed to opt for trading in the exchange market via the connect mechanism or by setting up an account in the exchange market, according to the PBOC.

The move came after a high-level guideline released in April specified a slew of tasks to promote market-based allocation of production factors, including pushing ahead the connection of bond markets.

Partly due to the need to isolate risks of the securities sector from the banking industry, the onshore bond markets have been fragmented for years, according to experts. The dominant interbank market is supervised by the PBOC and counts banks as major participants, while the smaller exchange market has non-banking institutional investors and is under the regulation of the China Securities Regulatory Commission, the top securities regulator.

As a step to integrate the two markets, China has allowed a larger scope of banking institutions, including foreign ones, to take part in spot-market auction trading of exchange market-listed bonds after they opened accounts at the market since last August.

The move announced on Sunday will further unify the markets by making spot-market transactions via one-to-one negotiations with the issuer available to banking institutions, a mode analysts said is more favored by banks than auction trading.

Yang Yewei, an analyst with Guosheng Securities, said the link mechanism will help reduce or even eliminate the bond spreads between the two markets and unify the trading prices, enhancing the efficiency of the onshore bond markets.

The move will also foster the opening-up of the domestic exchange bond market. Foreign investment is expected to continually increase, which can consolidate the Chinese bond market's ranking as the second-largest in the world, said Yang.

Xue Yi, a finance professor with the University of International Business and Economics in Beijing, said preparatory work still needs to be done before unveiling the connect program, given the institutional differences of the two exchanges such as when it comes to trading rules.

Top
BACK TO THE TOP
English
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
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 泽普县| 天水市| 洱源县| 灵山县| 秀山| 安泽县| 静乐县| 常宁市| 顺义区| 定襄县| 澎湖县| 灵寿县| 滦南县| 宜兴市| 大姚县| 柞水县| 迭部县| 元朗区| 霍林郭勒市| 卢氏县| 宜章县| 贵溪市| 鸡西市| 原平市| 凉山| 苍溪县| 伊川县| 滁州市| 山西省| 漠河县| 河西区| 城口县| 崇义县| 庆安县| 建水县| 云霄县| 莫力| 宁都县| 韩城市| 楚雄市| 南通市|