Corporate bonds approaching inter-bank market
Tuesday, 9 October 2007
BEIJING, Oct 8 (AP): China's central bank further boosted development of the corporate bond market by issuing regulations on bond issuance, transaction, and trusteeship in the inter-bank market, China Business News reported Monday.
According to an announcement made by the People's Bank of China (PBoC) on September 30, corporate bonds can be floated, traded and can be used to perform registry trust among banks in the inter-bank market as long as certain procedures are followed.
The paper quoted an official with the chief lender as saying that PBoC will not impose any other examination the bonds' issuance once they are approved by other regulators. In addition, corporate bonds already in circulation in the bourses can be accessed via the inter-bank bond market according to certain rules.
Except for currently available transactions like spot trading, collateralized repurchases, and buyout repurchases, investors can also conduct lending and derivatives trading of corporate bonds in the inter-bank market, according to PBoC's announcement.
The announcement also asked intermediary agencies and market makers to take relevant measures in facilitating the circulation of corporate bonds in the inter-bank market.
According to an announcement made by the People's Bank of China (PBoC) on September 30, corporate bonds can be floated, traded and can be used to perform registry trust among banks in the inter-bank market as long as certain procedures are followed.
The paper quoted an official with the chief lender as saying that PBoC will not impose any other examination the bonds' issuance once they are approved by other regulators. In addition, corporate bonds already in circulation in the bourses can be accessed via the inter-bank bond market according to certain rules.
Except for currently available transactions like spot trading, collateralized repurchases, and buyout repurchases, investors can also conduct lending and derivatives trading of corporate bonds in the inter-bank market, according to PBoC's announcement.
The announcement also asked intermediary agencies and market makers to take relevant measures in facilitating the circulation of corporate bonds in the inter-bank market.