China Gets a Step Closer to Unifying Its Fragmented $20 Trillion Bond Market

China’s central bank and top securities regulator approved a new set of rules designed to further connect the country’s two bond markets by establishing a mechanism that allows investors from one to trade on the other.

The measures (link in Chinese) for connecting the interbank and exchange bond markets mark the latest move in the nation’s years-long push to unify its fragmented $20 trillion bond market, whose different rules have added to the red tape for traders.