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BIZCHINA / Center |
Shanghai Stock Exchange names bond market makers(The Wall Street Journal)
Updated: 2007-07-12 10:49 Shanghai Stock Exchange names bond market makers The Shanghai Stock Exchange named 13 financial institutions as the first batch of primary dealers, or market makers, for its new electronic bond-trading platform, in a bid to help boost the market's liquidity. "The presence of market makers could improve market activity, as it will be much easier for investors to find counterparts, especially when they want to trade a large amount of bonds in the Shanghai Stock Exchange," said Wu Zezhi, an analyst at Orient Securities. Of China's three bond markets, Shanghai's is the only one without market makers. Bonds also trade on the interbank bond market and the over-the-counter retail market. Market makers on the Shanghai exchange will be required to post prices for treasury bonds with maturities of one, three, seven and 10 years, the exchange said. The market makers include Morgan Stanley venture China International Capital Corp, Citic Securities Co, Guotai Junan Securities Co and Changjiang Securities Co. Investors can start trading on the new electronic platform July 25. |
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