CHINA: CSRC Announces to Launch the Bond Market-Making Business

Monday February 6 2023

The China Securities Regulatory Commission (CSRC) announced that all preparations for bond market-making business have been completed and will be officially launched on February 2^nd, with the first batch of 6 securities companies participating in market making.

Bond market-making business has become a widely adopted trading mechanism in the international market. On the one hand, the launch of bond market-making business is conducive to reducing liquidity premiums and bond issuance costs, improving the function of the exchange bond market, and further giving play to the role of the bond market in supporting the real economy; On the other hand, it is conducive to improving pricing efficiency, forming a bond yield curve that can more accurately reflect the relationship between market supply and demand, and providing a benchmark reference for market pricing.

In the next step, the CSRC will earnestly implement the deployment of improving the function of the capital market and increasing the proportion of direct financing continue to strengthen the construction of the exchange bond market, guide the Shanghai and Shenzhen exchanges to carry out bond market-making business in a stable and orderly manner, and better serve the high-quality development of the economy.

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