Non-finance firms can tap interbank bonds
Print Edition
CHINA has allowed non-financial companies to tap the country’s interbank bond market as the government moves to develop a more active and diverse bond market.
The non-financial firms will access the bond market via a new separate trading platform from the one for banks, insurers and brokerages.
The government took this latest step to build a more matured bond market to pare companies’ reliance on bank funds and shadow banking funding system.
“It will open up the largely shielded interbank bond market to ordinary investors, who will be able to invest in the market through products issued by institutions, and help boost market vitality,” Niu Wen, analyst with financial service company Bankrate Inc, said in a note yesterday.
Qualified institutions with assets of at least 30 million yuan (US$4.9 million) are allowed to participate in the interbank bond market, the People’s Bank of China said in a statement released yesterday on the website of the National Association of Financial Market Institutional Investors.
Years of rapid expansion have propelled China’s bond market to become the third-largest in the world behind the US and Japan. Outstanding bonds stood at 28.27 trillion yuan at the end of September, of which the interbank market accounted for 93 percent, data from the China Central Depository & Clearing Co showed.
Commercial banks play a major role in China’s interbank market, taking up over 60 percent of trading volume, followed by funds and insurers.
By the end of September, 125 foreign institutions were trading in the interbank market, up 23 percent from a year earlier.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
