BEIJING, Dec. 4 (Xinhua) -- The People's Bank of China (PBOC), the Chinese central bank, released the bond valuation business management rules for interbank bond market on December 1, reported Xinhua Finance.
PBOC mapped out the rules, effective as of January 1, 2024, to better protect the rights and interests of market investors and boost the healthy and stable development of bond market in China.
It stipulated in the rules requirements over internal governance, selection and use of data sources, valuation methods, information disclosure, and conflicting interests for bond valuation institutions on the interbank bond market.
PBOC also required in the rules bond valuation institutions to improve their valuation technologies and transparency and encouraged diversified competition among the bond valuation institutions.
Under the rules, bond valuation institutions are required to keep optimizing the fairness of their bond valuation products and establish explicit, normative and transparent data use standards and layers.
The data selected by them shall be able to reflect the real market situations and amid relatively large or drastic market volatility, bond valuation institutions on interbank bond market shall be prudent in using data sources and pay attention to reliability of the related prices.
Meanwhile, the valuation institutions are required to disclose in a real, precise, complete and timely manner information about their bond valuation products, their valuation methods, sources and layers of data, method changes, termination, and transfer as well and release publicly their valuation products quality reports for market inquiry.
For next step, PBOC vowed to further enhance bond valuation business management, improve bond valuation systems and optimize bond market functions to constantly cement the benchmark and transmission function of bond market pricing. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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