By CHEN Jing
In a major shakeup of China’s financial regulation, the China Securities Regulatory Commission (CSRC) is to take over the management of corporate bonds, previously the duty of the National Development and Reform Commission.
The CSRC will also become a government agency, rather than a public institution, directly under the authority of the State Council.
A proposal to the National People's Congress includes thirteen items on the responsibilities, personnel, and structure of institutions overseeing science and technology, financial regulation, data management, rural revitalization, intellectual property and elderly care.
Corporate bonds make up 40 percent of China’s 59 trillion yuan (US trillion) bond market. Most are traded on exchanges. government bonds are usually traded over the counter.
The State Council has issued two memoranda on the bond market since April 2020, including bridging exchanges and the OTC market. A detailed guideline on corporate bonds was issued in August 2021.
