State media report that China regulates the bond market based on market principles

State media reported on Saturday that China’s financial controllers are keeping an eye on the bond market by following market rules and making sure there is macro-prudential stability and compliance. This comment disproves claims that the government is meddling in the market.

Recently, Chinese officials stopped a strong rise in the world’s second-largest bond market and lowered trading volumes by warning buyers over and over again about the risks of buying too much. A financial market group connected to the People’s Bank of China (PBOC) said earlier this month that they would be looking into four rural commercial banks that they thought were manipulating the bond market.

Some people in the market said that the PBOC was meddling in the market through administrative actions, but the PBOC backed up Financial News. In the article, it was made clear that regulatory bodies would not get involved directly as long as trade institutions followed market rules and the law.

The newspaper said that claims of market involvement were not true and warned of the possibility of a “stampede” in the bond market due to one-sided actions. This shows that China is serious about keeping the financial system safe and fair while lowering the risks in the bond market.