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Interbank Market Essential to China Bonds: News

CHINA PRESS

The interbank bond market is essential to China's bond market, the Financial News reported on Sunday citing industry experts from the PBOC. In what appeared to be a response to critics blaming the central bank for the recent string of SOE bond defaults, the report cited PBOC sources who said the main trading subject of credit bonds should be institutional investors rather than individual investors. Recent cases of credit bond default were due to inadequate corporate management unrelated to the credit bond market, and the authorities should focus on improving regulation mechanisms and credit ratings, the report said.

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