Shanghai Stock Exchange Asks Members To Do A Better Job In Risk Disclosure Of Bond Market

The Shanghai Stock Exchange (SSE) issued the "Notice of Doing a Better Job in Risk Disclosure of Bond Market" to its member units in response to the recent consecutive drops of the exchange's bond market. It was required in the notice that all the member companies should perfect the risk control of bond trading, cement the investor education and protection, as well as appraise and track the risks of clients' repo financing business and their bearing capabilities, in a bid to ensure a sound market.

The bond market has seen consecutive drops with the great fluctuation of bond prices due to the recent macro economic policy. The SSE issued the notice to protect the legal rights and interests of investors, safeguard the market operation and ensure the sound development of the bond market.

According to the notice, all the member companies should fulfill the duty of managing clients' trading, intensify the management on their business departments and consummate the risk control of bond trading; besides, they should strengthen the investor education and protection and protect the interests of investors by timely fostering their abilities of rational investment and risk prevention.