On December 18, the National Association of Financial Market Institutional Investors (NAFMII) announced that it had launched a self-regulatory investigation into China Development Bank.
According to the NAFMI, according to the situation reported by market institutions and the information monitored by the NAFMII on a daily basis, the China Development Bank is suspected of improperly influencing market prices in the financial bond issuance business and money market business. This also involves the participation of a number of financial institutions. In accordance with the Rules for Self-Discipline in the Interbank Bond Market, NAFMII will initiate a self-regulatory investigation into CDB.
Just 20 days ago, on November 28, the Dealers Association had just launched a self-discipline investigation into Shanxi Securities for allegedly interfering with the issuance of relevant debt financing instruments and affecting the market order.
In fact, since 2023, there has been a stronger atmosphere of strict supervision for various violations that may exist in the bond issuance process and secondary transactions. According to statistics, in the first half of the year alone, the National Association of Institutional Investors initiated self-discipline investigations against 34 institutions in accordance with regulations, and made self-discipline sanctions against 68 (persons), involving 16 issuers, 7 lead underwriters, 6 trading institutions, 2 investors, 1 accounting firm, 1 asset-backed note (ABN) issuance vehicle management agency and 35 responsible persons.
The subjects of the self-regulatory investigation include banks, securities firms, trust companies, asset management companies and other institutions:
For example, on March 31, a self-discipline investigation was launched into four financial institutions involved in irregularities in the issuance process, including Everbright Securities and Bank of Jilin; on April 4, a self-discipline investigation was launched into the suspected violations of ICBC in the process of lead underwriting of bonds; on May 9, a self-discipline investigation was launched into the suspected irregularities in the issuance of financial bonds by the Export-Import Bank of China and the underwriting business of Minsheng Bank; on May 11, a self-discipline investigation was launched on the suspected violations of the underwriting business of debt financing instruments of China Construction Bank; on May 31, a self-discipline investigation was launched on the suspected violations of the underwriting business of debt financing instruments of China Construction Bank; on May 31, a self-discipline investigation was launched into the underwriting business of debt financing instruments of China Construction Bank; Seven institutions, including Jurong Property, Great Wall Guorui Securities, Bohai Securities, Guolian Securities, Guorong Securities, and Guohai Securities, were suspected of violating regulations in the issuance and trading of relevant debt financing instruments, and initiated self-regulatory investigations.
Industry insiders generally believe that the frequent actions of the NAFMII against various violations in the interbank bond market fully reflect the strict attitude of the regulators to continue to increase the investigation and punishment of violations and the firm determination to purify the market environment and maintain market order. Relevant financial institutions engaged in bond market business should take the "named" institutions as a warning, keep in mind the market-oriented principles in the process of bond issuance, underwriting, market-making transactions, etc., conduct business in accordance with regulations, and establish an image with high-quality services, rather than taking shortcuts in violation of regulations.
Source: Financial Times Client Reporter: Zhang Chi Editor: Yang Jingyi Email: [email protected]