Get a glimpse of China's new rules to boost interbank transparency
Illegal bond trading will be clamped down on.
According to BBVA, the People’s Bank of China (PBoC) announced measures to improve transparency in the interbank bond market by clamping down on illegal bond trading.
The measures require all bond transactions to be conducted through the National Interbank Funding Center (rather than over-the-counter).
Here's more from BBVA:
Last April, several market participants were arrested or put under investigation on suspicion of circumventing trading restrictions to boost profits.
We do not believe today’s announcement is directly linked to efforts to curb shadow banking activity and the related squeeze in the interbank market.