Exclusive | Some banks' interface head notices reaffirm the regulations on proprietary funds investing in exchange-listed corporate bonds

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[Caixin] Commercial banks mainly participate in bond investments through two channels: proprietary funds and wealth management funds. Recently, there have been rumors in the market that some banks’ proprietary funds will suspend investment transactions in certain corporate bond varieties on exchanges.

On March 25, a relevant person from the Securities Association of China denied the claim that “regulators do not allow banks to participate in exchange investments in private placement bonds and asset securitization products.”

According to Caixin’s understanding, some small and medium-sized banks in certain provinces have recently received verbal notices, with the monetary regulatory authorities reiterating that institutions should follow the “Notice on Issues Concerning Banks’ Participation in Bond Trading on Securities Exchanges” issued in August 2019 (hereinafter referred to as the “Notice”).

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