Reported 2 months ago
China has escalated its efforts to combat a record bond rally by targeting various financial institutions, including fund companies and rural banks. Following a drop in benchmark yields and a surge in bond purchases, state banks began selling seven-year bonds while regulators slowed the approval for new bond funds. This pushback comes amid concerns of a potential bond market bubble, but analysts remain skeptical about the long-term effectiveness of these measures given the expected interest rate cuts aimed at stimulating economic growth.
Source: YAHOO