Reported about 2 months ago
The People's Bank of China (PBOC) has begun stress tests for financial institutions regarding their bond investments, aiming to assess their ability to withstand market volatility as recent rallies raise concerns of a potential rush to sell. These tests will examine how banks might react to significant fluctuations in bond yields, amidst fears of liquidity crises and financial instability. The PBOC is balancing its efforts to mitigate speculative trading while supporting economic liquidity in light of recent market developments.
Source: YAHOO