Reported about 2 months ago
China's tightening measures to cool a record bond rally have resulted in a significant drop in trading activity, with average daily volumes plummeting as much as 90% compared to earlier in the month. The People's Bank of China has escalated its actions from verbal warnings to regulatory checks and state bank interventions to combat speculation, raising concerns about the bond market's ability to maintain price discovery. Despite rising yields, analysts warn that continued low trading volume could lead to negative consequences for the market.
Source: YAHOO