China launched a platform for commercial paper trading in Shanghai on Dec 8, to better regulate the trading for bills of exchange. The platform, operated by the newly set Shanghai Commercial Paper Exchange Corp and overseen by the central bank, will make commercial paper trading more transparent and prevent potential risks arising from paper bill transactions. Trading volume in China’s commercial paper market hit 102.1 trillion yuan (US$15 trillion) in 2015 due to growing needs of small firms for short-term financing, according to PBOC data.
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