China’s central bank, led by Governor Pan Gongsheng, is studying the implementation of government bond trading in collaboration with the Ministry of Finance. This move comes as China’s sovereign bond futures reached a record closing high, driven by a buying frenzy despite regulatory scrutiny. The People's Bank of China (PBOC) has signaled that it might soon start trading in the secondary bond market as yields continue to fall. Pan Gongsheng emphasized that this practice would not equate to quantitative easing and reiterated the PBOC's commitment to a supportive monetary policy stance and strengthening cross-cyclical adjustments. Additionally, the PBOC plans to gradually introduce sovereign bond trading and increase treasury bond purchases and sales in open market operations.