Citi has received regulatory approval to act as an interbank bond market maker in China, becoming only the second foreign bank after JP Morgan in May last year to be allowed to quote continuous two-way prices for a range of interest-rate products.
Citi announced news of the approval on August 12. It will compete with 19 incumbent mainland Chinese market-makers, but the decision by the Peoples' Bank of China reflects the country's intention to inject more liquidity and reduce regulatory barriers in the domestic bond markets by licensing foreign market makers. China is also keen to reduce its companies' reliance on bank loans for funding and make corporate bond yields more attractive to...
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