News — ChangeLab

Chinese onshore bond traders cut off from pricing and transactional services amid increased financial data regulation

Chinese onshore bond traders in mainland China have lost access to real-time financial data previously provided by third-party platforms such as Quebee and DealingMatrix.

The reason was the Chinese central government's decision to tighten data security controls and regulation of the financial sector after the annual meeting of the National People's Congress earlier this week.

Chinese traders now have to resort to chat groups with price information on social media. For example, Wind Information, a Shanghai-based financial information and service provider, has created chat groups on its platform for traders to manually pick up dealers.

However, right now, such a manual bidding chat system is inefficient and it is more like "blind bond buying. Moreover, 90% of group chats are crowded with participants and do not allow other new users to join.

On this basis, according to experts, this bond situation will have a huge impact on the financial sector in the short term, especially on the liquidity of the transaction for all non-government bonds. On the other hand, it may bring the Chinese bond market in line with international standards, which will favourably affect the stability of the market and the efficiency of price setting.