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Healthy, sustainable development of bond market stressed

Updated: Nov 22,2020 06:29 PM

China's financial regulators will work hard to standardize the development of the bond market and maintain the market's stability, according to those at a meeting held by the financial stability and development committee under the State Council on Nov 21.

The meeting was presided over by Vice-Premier Liu He, who also is a member of the Political Bureau of the Communist Party of China Central Committee and head of the financial stability and development committee.

Healthy and sustainable development of the capital market is highly emphasized by the CPC Central Committee and the State Council. With further reform and opening-up in China's bond market, its capacity of serving the real economy has been strengthened, and the market has maintained an overall steady operation, the meeting said.

The increase in defaults recently has resulted from cyclical, systematic and behavioral factors, the meeting stated, stressing efforts to promote improvement in stability and seek a law-based and internationalized market with risks controlled in a proper manner.

As the meeting required, financial regulators should supervise market entities to fulfill their responsibilities to build a sound local financial ecology and credit environment.

Those at the meeting also pledged "zero tolerance" and severe punishment on violations of laws and regulations, such as fraudulent securities issuance and noncompliance with information disclosure rules.

Bond issuers, their shareholders, financial institutions and other market entities must strictly abide by laws, regulations and market rules, guard against moral risks, the meeting said.

Those at the meeting called for more inter-department coordination and cooperation to control risks.

Those at the meeting also stressed further reform of the bond market and reforms on State-owned enterprises.