China Issues 37 Directives in One Day to Cool a Wild Market
- Trading volume of convertible bonds hit record high in October
- Fund manager warns of potential risks in T+0 stock trading
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Unprecedented volume, dozens of trading suspensions and daily circuit breakers: China’s convertible bond market turned so chaotic that regulators released 37 new directives in a day just to calm it down.
While the market is no stranger to bouts of speculation followed by crackdowns from Beijing, wild moves last month included one note that surged as much as 180% in a day before losing more than half its value. Activity has cooled since the China Securities Regulatory Commission released its draft rules on Oct. 23, with Tuesday’s trading volume more than 70% lower than last month’s record high.