China tightens rules on bond market

A Chinese finance industry body issued new rules for the bond market on Monday to help eliminate institutions’ advantage over retail investors, The Wall Street Journal reported, citing people familiar with the matter. Underwriters must now set rates on short- and medium-term bonds closer to those already on the market, reducing the markup above the issuer’s price that underwriters could previously sell the bonds at. Bonds can also no longer be purchased at rates that are unavailable to retail investors. The sources said the National Association of Financial Market Institutional Investors issued the rules for the booming bond market at a closed meeting Monday.