China Tightens Grip on Interbank Bond Underwriting

China's interbank market regulator has issued a notice to strengthen the management of bond underwriting fees. The notice requires lead underwriters to avoid low-cost bidding and to improve information disclosure during debt financing instrument issuance. The changes take effect on August 11.

China's interbank market is set for a shift as regulators announce new measures to manage bond underwriting fees effectively. The notice issued on Wednesday calls for lead underwriters to desist from bidding with fees lower than actual costs, a move aimed at maintaining market stability.

The National Association of Financial Market Institutional Investors (NAFMII) has also emphasized the need for enhanced information disclosure by lead underwriters and issuers concerning debt financing instrument issuance. This effort is intended to boost transparency within the sector.

These new requirements are scheduled to come into force on August 11. The regulatory changes underscore China's ongoing efforts to refine its financial markets and ensure fair competition practices.

(With inputs from agencies.)