China asked some of the nation’s biggest banks to help stabilize the domestic bond market after a wave of fund redemptions by retail investors fueled the biggest credit selloff since 2015, according to people familiar with the matter.
Regulators asked lenders to buy bonds via their proprietary trading desks, said the people, who spoke on condition of anonymity to discuss a private matter. The goal is to absorb the selling pressure caused by retail withdrawals from some of those same banks’ wealth management products, the people said.
