China’s central bank asked participants in the nation’s $3.7 trillion interbank bond market to examine trading histories, said two people with knowledge of the matter, amid reports of a probe into illegal transactions.
The People’s Bank of China held a meeting last week with the China Foreign Exchange Trade System, the National Association of Financial Market Institutional Investors and other market participants to discuss possible measures for boosting control over trading, said the people, who asked not to be identified because they weren’t authorized to speak publicly about the matter. The central bank said revelations of illegal trading had recently surfaced, according to the people.
Chinese regulators are investigating illegal fixed-income transactions in accounts typically used by senior traders at financial institutions, the Shanghai Securities News reported last week. The government has sent teams to inspect trading records at companies in Shanghai, Beijing and Jiangsu province, the newspaper reported, without citing anyone.
The People’s Bank of China didn’t immediately respond to faxed questions seeking comment.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Mingze Wu
centers on forex and macro-economic trends impacting the Asia Pacific region.
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