Reported about 2 months ago
The People's Bank of China (PBOC) has clarified that it will not ban bond trading but is concerned about the risks stemming from a recent buying frenzy in government bonds. Despite not forbidding legitimate trading, the central bank has issued warnings to several financial institutions that have rapidly increased their bond holdings, highlighting fears of unsustainable low yields leading to market instability. The PBOC aims to maintain market stability amidst rising concerns over a potential bond bubble while investors continue to flock to government securities as safe assets.
Source: YAHOO