Reported 5 months ago
China's state media cautions against speculative trading in special sovereign bonds, especially after a surge led by retail investors caused trading halts on the Shanghai and Shenzhen exchanges. The bond, issued to aid the economy amidst a property downturn and slow business growth, experienced significant price fluctuation. Analysts warn about the risks of chasing rallies in a market with low liquidity, as the bond's yield on the exchange was notably lower than in the interbank market, prompting concerns about investors treating bonds like stocks in the exchange market.
Source: YAHOO