(Corrects to add policy bank bonds can also be traded on the
Shanghai Stock Exchange)
BEIJING, April 10 China will allow its policy
banks to use the Shenzhen Stock Exchange to issue bonds, the
exchange said in a statement on Monday.
Currently, such bonds can only be issued and traded on the
interbank bond market and the Shanghai Stock Exchange.
China's securities regulator and central bank have approved
expansion of this trading in a bid to further develop the
country's debt market, it said.
Beijing has pledged to further open up its financial sector
but is also struggling to contain risks from a rapid build-up in
debt. China's total bond market was worth 57 trillion yuan at
the end of 2016.
Trading of government debt futures also launched in Hong
Kong on Monday but trading was slow as investors grappled with
some operational issues and contract limits.
(Reporting by Dominique Patton and Samuel Shen; Editing by Tom