Bar on bank participation to stymie China Treasury bond futures market relaunch
Despite banks holding an overwhelming majority of the domestic bond market they are barred from participation in futures trading
The China Securities Regulatory Commission's (CSRC) attempts to restart domestic Treasury bond futures trading after an 18-year gap will be hampered by the bar on direct bank participation, observers say.
The CSRC announced plans at the start of July to resume trading of bond futures in China as early as September. However, the current regulatory approach allows only securities firms, but not banks, to participate in the exchange-traded market. Patrick Wu, head of trading China at JP Morgan in
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