China Regulators Tell Some Rural Banks to Renege on Bond Trades
- Regulators have opened probes into bond trading at banks
- Authorities are seeking to cool massive bond market rally
The red torch statue standing atop Nanshan Park, Jinggang Mountain, Jiangxi province.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Regulators told commercial banks in China’s Jiangxi province not to settle their purchases of government bonds, taking some of the most extreme measures yet to cool a market rally that has alarmed Beijing.
Several rural banks failed to settle their transactions on Monday after regulator guidance to halt purchases late on Friday, said people familiar with the matter, asking not to be named discussing private information.