Macro observation, 2022, issue 24 (total issue 421): also comments on the measures for the administration of bond lending business in the inter-bank bond market - the standardized development of bond lending business

In recent years, with the rapid development of China's bond lending business and the continuous expansion of transaction scale, it has become an important part of bond transactions in the inter-bank bond market. In February 2022, the people's Bank of China issued the measures for the administration of bond lending business in the inter-bank bond market (hereinafter referred to as the measures), which will be implemented from July 1. The measures improve the bond lending system from the aspects of market participants, performance guarantees and Master Agreements, and further clarify the information disclosure and risk detection of the business. In the future, the bond lending business will gradually move towards standardized development. Financial institutions should grasp the development trend of bond lending business, actively enter the market and participate in transactions to broaden business development. At the same time, we should also establish the concept of prudent investment, strictly abide by the business bottom line, prevent excessive speculation and ensure the steady operation of the market.