China’s central bank wary of bond bonanza as secondary trade talk continues

Quick Summary:

The People’s Bank of China remains open to taking part in the secondary bond trade, but warned of several potential risk areas it said would warrant close attention.

In its statement, the PBOC said it will advance market-based interest rate formation, explore narrowing the interest rate corridor and encourage financial institutions to enhance their independent pricing capabilities, leading to a steady reduction in the costs of corporate financing and residential credit.“We will also prevent capital idleness and ensure that financial institutions actively identify and fulfil effective credit demands,” it said.

As of Monday at close of business, the 10-year government bond yield stood at 2.2135 per cent, up 6.25 basis points from the previous trading day.

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Article Details

Author / Journalist: Mia Nulimaimaiti

Category: Business

Markets: Hong KongChina

Topics: Financial Market Secondary Interest Bank People’s Rate Risk Bonds Bond Central

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-08-12 @ 18:30:13 (2 hours ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 473 words

Reading Time: 3 minutes read

Sentences: 10 lines

Sentence Length: 48 words per sentence (average)

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Copyright Owner: © SCMP

News ID: 22030309

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