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China's Shanghai exchange restricts trading of high-risk bonds 

June 17, 2014
Pete Sweeney and Lu Jianxin, Reuters

The Shanghai Stock Exchange on Tuesday announced restrictions on who can trade high-risk bonds, another step in a campaign to steer retail investors away from risky high-yield investment strategies and toward buying and holding for value.

The new regulations, effective immediately, say bonds issued by companies that operated at a loss the previous year will receive a special "ST" designation, identical to the "special treatment" tag applied to shares in loss-making companies trading on the stock exchange.

Individual investors must have at least 5 million yuan ($805,300) in financial assets to trade ST bonds, the statement said. They must also sign a document saying they understand the risk such trades entail.

Read more: Reuters


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