The People's Bank of China (PBoC) held a centralized negotiation with institutions that have been aggressive in their bond market investments since December. The institutions that were taken in for negotiation included some banks, securities firms, insurance companies, trust and asset management companies, funds, and other relevant institutions. The PBoC reminded the market participants to be cautious of interest rate risks and to enhance their research and analysis capabilities. When it comes to bond investments, they must act in a prudent and stable manner. The PBoC emphasized that all institutions must abide by the law and regulations, and there will be zero tolerance for any misconduct. According to recent reports, the authorities have already started investigating and punishing a number of illegal activities that have disrupted market prices and manipulated profits. The PBoC has expressed its intention to conduct thorough inspections on a regular basis in the future, warning institutions not to rely on luck or take advantage of loopholes.
Source: cnwallstreet