File photo shows an exterior view of the Shanghai Stock Exchange at Pudong New Area in Shanghai, east China. (Xinhua)
BEIJING, Feb. 6 (Xinhua) -- China Securities Regulatory Commission (CSRC), the Chinese securities regulator, announced on February 3 formal operation of bond market making business on Shanghai and Shenzhen bourses from Monday, reported Xinhua Finance.
A dozen of securities brokers would take part as the first batch of participants in the market making service for bonds traded on the two stock exchanges, said the report citing news from CSRC.
As a widely-adopted trading mechanism on global market, market making business for bonds is expected to help reduce the liquidity premium and issuing costs of bonds and better leverage the role of bond market in supporting the real economy in China.
Moreover, bond market making will contribute to improving bond pricing efficiency and formation of bond yield curves that reflect bond market supply and demand more precisely, and provide better benchmarks and references for market-oriented bond pricing.
In the future, CSRC vowed to continue to guide the two bourses to steadily and orderly operate bond market making business so as to further enrich the capital market function and raise the proportion of direct financing to better serve the real economy. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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