Regulator Did Not Issue Nationwide Bond Investment Guidance to Small Banks, Source Says

TREE NEWS update: China’s financial authorities have not issued any nationwide unified arrangement on the pace of financial investment growth or the duration of newly added bonds at small and mid-sized banks, an informed person said. Market chatter had claimed some provincial regulators told such banks that financial investment growth must not exceed loan growth and that new bond duration must not exceed existing duration. Under market principles, small banks’ bond investment decisions based on their own balance sheets fall within their operational autonomy, the person said.