China To Launch Market-Making Business on Bond Markets

China's securities regulator announced on Friday that it will begin market-making business on its exchange bond market on February 6 in order to improve the market's functions.

According to the China Securities Regulatory Commission, the move will lower bond issuance costs and improve bond pricing efficiency.

According to a separate statement from the Shanghai Stock Exchange, the first batch of market makers includes Essence Securities, Orient Securities, and ten other brokerage firms.

The Shanghai Stock Exchange (SSE) is a Chinese stock exchange based in Shanghai. It is one of three independent stock exchanges in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exchange. With a market capitalization of $7.62 trillion as of July 2021, the Shanghai Stock Exchange is the world's third largest stock exchange. It is also the largest stock exchange in Asia. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not completely open to foreign investors and is frequently influenced by central government decisions due to capital account controls imposed by Chinese mainland authorities.