【Financial Str. Release】China's Shanghai, Shenzhen bourses release new bond trading rules, effective from April 25

A staff member walks past the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province, Sept. 21, 2020. (Xinhua/Mao Siqian)

BEIJING, Jan. 28 (Xinhua) -- China's Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) unveiled on Thursday their respective new bond transaction rules, effective as from April 25 this year, reported Xinhua-run Xinhua Finance.

SSE released together with the bond trading rules three sets of supporting guidelines on bond trading participant management, general pledged bond repurchase transaction and bond market making, in an effort to improve secondary market liquidity and regulate bond trading activities.

The SSE's four sets of bond rules mainly relate to four aspects, including establishing and enriching bond trading participant rules to expand the types of bond market players, optimizing bond trading mechanisms by perfecting current trading ways, introducing bidding mechanism, expanding trading time and adjusting the quantity requirements for bond transaction declaration and price control methods to better serve investors, setting up bond market making mechanism to improve price discovery of its bond market, and strengthening bond trading supervision and risk management as well.

SZSE enriches through the new rules bond market participants and optimizes bond trading ways. 

To better adapt to trading habits of mainstream investors and boost connectivity of domestic and overseas bond markets, the Shenzhen-based bourse's new bond trading rules standardize various trading factors.

For instance, the new rules change the declaration quantity unit to par value of bonds and raise, excluding negotiated trading, the quantity threshold for declaration of cash bond trading orders to 100,000 yuan of par value.

The minimum change of bond prices is also adjusted to 0.0001 yuan in the new bond trading rules of SZSE, excluding that in pairs trading.

Except otherwise provided by SZSE rules, the new bond trading rules require cash bond transactions to be declared in clean price. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)