PRC banks should take cautious approach when trading bonds on exchanges

Commercial Chinese banks should raise their risk control capacity and be wary of underlying risks in different transactional mechanisms, say counsel

The China Securities Regulatory Commission (CSRC), People's Bank of China and the China Banking Regulatory Commission issued the Circular on Issues Relevant to Pilot Participation of Listed Commercial Banks in Bond Trading on Stock Exchanges (Zheng Jian Fa [2010] No.91) (中国证券监督管理委员会、中国人民银行、中国银行业监督管理委员会关于上市商业银行在证券交易所参与债券交易试点有关问题的通知(证监发[2010]91号) on October 27.