PBOC To Speed Up OTC Bond Trading-Daily

The People’s Bank of China has exerted its influence on two occasions since the start of August, in order to accelerate the development of over-the-counter bond trading between commercial banks as it aims to improve the liquidity of the bond market and form a more continuous and effective secondary market pricing mechanism, the Securities Daily reported. Regulators should diversify bond varieties to generate demand from individual investors, as over-the-counter bonds trading is dominated by treasury bonds, financial bonds issued by policy banks and local government bonds with higher credit ratings but lower yields, the newspaper said, citing analysts. Also, regulators can guide the issuance of some special bonds to support green finance and rural revitalization to expand the OTC bond market, the newspaper added.