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In Depth: The rally in China’s bond market and a surge in trading has prompted regulators to investigate the activities of large banks and fueled speculation that regulators might intervene in their investments. https://t.co/i3T1Dv0gae
Traders are seeing a surge in trading of some Chinese special government bonds mostly owned by the central bank, a sign that the authorities may have become more active in selling their debt holdings to cool a sizzling rally. https://t.co/EPowINTnTx
PBOC-OWNED CHINA BONDS SEE TRADING SURGE IN SIGN OF INTERVENTION
The People's Bank of China (PBOC) has been actively selling its holdings of government bonds, sending a warning signal to market participants about the ongoing rally, as noted by the Shanghai Securities News. This intervention has led to a surge in trading of these bonds, particularly special government bonds mostly owned by the central bank. The 30-year bond futures have increased for the seventh consecutive day, marking the longest streak since July. Regulators are investigating the activities of large banks amid the rally and the increased trading volume.