China to Consider Starting Trading of Credit-Default Swaps
- NAFMII sought views on CDS and credit-linked notes, people say
- CFETS held meeting with some institutions last week, they say
An investor reacts at a stock exchange hall in Beijing, on Jan. 4, 2016.
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China is considering starting trading of credit-default swaps as the number of corporate nonpayments surges, according to people familiar with the matter.
The National Association of Financial Market Institutional Investors, a central bank subsidiary which oversees interbank market bonds, last month sought opinions on CDS and credit-linked notes from market participants including banks and brokerages, according to the people, who asked not to be identified because the details haven’t been announced. China Foreign Exchange Trade System, which oversees interbank bond trading, held a meeting in Shanghai last week with some financial institutions on the products, they said.