China’s central bank has announced that all interbank bond trading must be conducted through the National Interbank Funding Center in an effort to increase transparency and stop illegal bond trading, Bloomberg reported. Clearing agencies are not permitted to settle trades outside of the interbank market, and transactions cannot be changed once two parties reach an agreement. The new regulations seek to push companies to raise funds through bonds rather than relying on bank lending. The State Council opened up trading this month on government debt futures for the first time in 18 years, giving investors another way to hedge risk.
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