Central bank loosens interbank debt rules
20 December 2005
The People's Bank of China has loosened corporate bond requirements in a move that will allow more bonds to be traded on the interbank debt market, the Wall Street Journal reported. Among the new rules, the minimum issuance amount is US$61.9 million, a single investor can hold no more than 30% of the bonds issued and the issuer must disclose various pieces of financial information. Six corporate bonds already trade on the interbank market, which is dominated by debt from the Ministry of Finance. The move further drops barriers between China's bond-trading venues - the stock exchanges and the interbank market - which have different products, traders and pricing systems.
