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China’s Bond Market Mayhem Pressures Regulator to Address Issue

  • Officials have told market makers to provide stability: Caixin
  • Transactions plunged after brokers cut bond price feeds

China’s banking regulator is under pressure to minimize the impact of the sudden suspension of commonly used bond price feeds, which shocked investors and sent volumes plunging in the world’s second-largest debt market.

Officials told some market makers to provide stability by maintaining trading volumes, narrowing bid-ask spreads and supplying quotes of corporate bonds as much as possible, Caixin reported late Wednesday, without saying where it got the information.