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China's Central Bank Fines Institutions as Bond Yields Hit Record Low

share-iconWednesday, January 01 comment-icon3 weeks ago 13 views
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China's Central Bank Fines Institutions as Bond Yields Hit Record Low

Credited from: SCMP

  • China's central bank has fined three financial institutions for violations in bond trading, marking its first punitive actions since May.
  • The fined institutions include Shanghai East Asia Futures, Hunan Xupu Rural Commercial Bank, and Tianjin Xintang Money Brokerage, with total fines of approximately 60 million yuan.
  • Amid declining returns from stocks and real estate, investors are shifting towards government bonds, causing yields to drop significantly.
  • The 10-year bond yield recently fell to a historic low of 1.6981%, raising concerns about interest rate risks and the need for stronger risk management.
  • The National Association of Financial Market Institutional Investors has called for better strategies to manage interest rate risks as investor sentiment in the bond market grows cautious.

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