Chinese Regulator Steps Up Probes of Bond Underwriting Practices

(Bloomberg) — China’s credit markets are closing out the week trying to digest the implications of new probes that a key regulator announced in recent days into bond underwriting at several major banks.

The National Association of Financial Market Institutional Investors (NAFMII) launched a so-called self-discipline probe into China Construction Bank Corp. for alleged violations in underwriting services, the organization said late Thursday in a statement. NAFMII is an entity governed by China’s central bank that oversees interbank bond sales.