发帖
雷达卡
China Inches Closer to Launching Credit-Default-Swap Market
China’s interbank-market regulator is likely to seek approval from China’s central bank to launch a CDS market soon
By SHEN HONG
Updated Aug. 4, 2016 1:36 a.m. ET
0 COMMENTS
SHANGHAI—China is inching closer to launching its own version of credit-default swaps, a popular financial derivatives contract for hedging credit risks, three people familiar with the situation told The Wall Street Journal on Thursday.
The National Association of Financial Market Institutional Investors, an industry body backed by China’s central bank, has consulted major banks and brokerages in recent weeks about draft guidelines and standardized contracts for the product, said the people, who were briefed by the regulator on the matter.
The regulator, which oversees the nation’s vast interbank market, is expected to ask the People’s Bank of China for formal approval to launch a CDS market soon, said one of the people who declined to be named.
China experimented with a similar but less sophisticated version of CDS, which offers investors insurance protection against potential debt defaults, about six years ago. However, the market never took off due to lackluster demand that resulted from an absence of widespread bond or loan defaults in the country.
“But the conditions are ripe for China to roll out CDS now, after we saw an unprecedented surge of bond defaults amid a slowing economy this year,” said one of the people.
Officials at NAFMII couldn’t immediately be reached for comment.
京公网安备 11010802022788号
