NDRC Takes Aim at Pricing of Enterprise Bonds

(Beijing) – The regulator of enterprise bonds has ordered underwriters to change their preferred pricing mechanism so issuance can be more transparent, several sources with knowledge of the matter say.

This is the latest effort by authorities relevant to the bond market, which also include the central bank and the securities regulator, to clean up the interbank bond market and close regulatory loopholes, after several executives from large financial institutions were arrested over suspected financial crimes that took advantage of the trading mechanism.