China to allow investment in interbank bonds through over-the-counter trades from May 1

China's central bank said on Thursday that investors will be allowed to invest in interbank bonds through over-the-counter trades from May 1. ($1 = 7.1947 Chinese yuan renminbi)

China's central bank said on Thursday that investors will be allowed to invest in interbank bonds through over-the-counter trades from May 1. The scale of government bonds held directly by Chinese residents remain relatively small compared with other mature markets, which it sees large room to improve, the central bank said in a statement.

Bond investment via over-the-counter channels can efficiently convert savings into bond investments so as to increase residents' property income, the central bank added. China's bond market is the world's second-largest with the outstanding volume totaling 158 trillion yuan ($21.96 trillion)as of the end of 2023, per official data. ($1 = 7.1947 Chinese yuan renminbi)