The Chinese central bank has introduced new rules applicable to bond borrowing on China’s interbank market.
On 11 February the People’s Bank of China (PBOC) issued the “Interbank Bond Market Bond Borrowing Operation Administrative Measures” (银行间债券市场债券借贷业务管理办法) which are scheduled to come into effect on 1 July 2022.
The Measures state that where default arises during bond borrowing, the two parties to the bond borrowing may apply for intermediation or file a lawsuit with a people’s court of law, as well as submit the final verdict to trading platforms and bond settlement services entities on the following day.
