China central bank plans new bond risk metrics
China plans to introduce new metrics to curb excessive bank holdings in long dated bonds. The framework aims to reduce investment risks amid a persistent bond market rally. Specific benchmarks remain under discussion with the industry.
China plans to add new metrics to its Macro Prudential Assessment framework, targeting excessive holdings of long-dated bonds by banks. The Monday move aims to curb investment risks as financial institutions chase yields in a rallying market. Smaller lenders face pressure to adjust portfolios as regulators tighten oversight.
