PBoC stress-tests financial institutions’ bond holdings
Bank steps up efforts to tame market rally while keeping key medium-term rate unchanged
The People’s Bank of China (PBoC) has started conducting stress tests on financial institutions’ bond investments amid a rally in government bonds, state media reported on August 26.
The central bank on the same day also announced that it was keeping its medium-term lending rate unchanged.
In a front-page story, Financial News, a newspaper managed by the PBoC, said the stress tests were aimed at assessing whether institutions could handle the risks in the event of a bond market reversal should
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