Beijing has initiated a program to allow domestic listed banks to resume trading bonds on Chinese exchanges after a 13-year hiatus, Dow Jones reported, citing statements by securities and banking regulators. Banks were banned from trading exchange-listed bonds in 1997 after Beijing said some banks had illegally funneled funds into stocks. Now the government wants to encourage the development of the country’s fixed-income market. Banks are the most active traders of bonds in China through the inter-bank market, and banning them from trading on exchanges has stifled the development of the overall bond market.
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