Foreign banks to trade corporate bonds

Some foreign banks in China will be permitted to trade mainland corporate bonds with some restrictions as Beijing has decided to relax restriction on the sector, the Financial Times reported, citing people close to the foreign banks. The China Banking Regulatory Commission has informed the unnamed foreign banks that they will be allowed to trade corporate bonds only on the interbank market. Foreign banks have been keen to be allowed back into the corporate bond market after being asked to cease trading in 2005. The move is part of a long-term plan to make Chinese capital markets more efficient.