After four rural commercial banks were investigated by self-discipline last week, another rural commercial bank was banned from trading treasury bonds? Responses from several rural commercial banks in Jiangsu
2024-08-13
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On August 12, it was reported that the Jiangsu Provincial Federation of Trade Unions notified the Jiangsu Rural Commercial Bank to prohibit treasury bond trading, and some securities firms' proprietary trading and asset management were also guided. In response, The Paper called the securities affairs representative offices of several listed rural commercial banks in Jiangsu Province, and many banks said that they had not received relevant information yet.
The staff of the Securities Affairs Representative Office of Jiangsu Zhangjiagang Rural Commercial Bank (Zhangjiagang Bank, 002839.SZ) said that they have not heard any relevant news yet, and the bond business of Zhangjiagang Bank is currently normal.。The staff of Jiangsu Zijin Rural Commercial Bank (Zijin Bank, 601860.SH) Securities Affairs Representative Office also said that they have not received relevant notices. The staff of Wuxi Rural Commercial Bank (Wuxi Bank, 600908.SH) Securities Affairs Representative Office said that the board office is not clear whether the bank has received relevant notices, and specific matters can be consulted with the bank's financial market department.
The Paper also called the securities affairs representative offices of Jiangsu Changshu Rural Commercial Bank (Changshu Bank, 601128.SH) and Jiangsu Suzhou Rural Commercial Bank (Sunong Bank, 603323.SH), which were investigated by the National Association of Financial Market Institutional Investors (NAFMII) last week. A staff member of Changshu Bank said that it was unclear whether the bank had received the relevant information; a staff member of Sunong Bank said that they had not received any relevant information yet, nor had they received the results of the self-discipline punishment last week.
Soaring rural commercial bank bond trading draws regulatory attention
Since last week, rural commercial banks in Jiangsu have attracted much attention from the market. On August 7, the National Association of Financial Market Institutional Investors launched a self-discipline investigation on four rural commercial banks in Jiangsu. The National Association of Financial Market Institutional Investors announced that the National Association of Financial Market Institutional Investors found that Changshu Bank, Jiangsu Jiangnan Rural Commercial Bank Co., Ltd., Jiangsu Kunshan Rural Commercial Bank Co., Ltd., and Sunong Bank were suspected of manipulating market prices and transferring benefits in the secondary market transactions of treasury bonds. In accordance with the "Interbank Bond Market Self-Discipline Punishment Rules", the National Association of Financial Market Institutional Investors launched a self-discipline investigation on the above four institutions.
In response to this, a staff member of the Securities Affairs Representative Office of Changshu Bank said in response to The Paper that Changshu Bank's treasury bond transactions may be more frequent or have a larger volume, which has attracted the attention of the Securities Dealers Association, but it does not mean that Changshu Bank has violated regulations in its business. A staff member of the Securities Affairs Representative Office of Sunong Bank responded that several banks in southern Jiangsu, including Sunong Commercial Bank, bought a large amount of bonds sold by the four major banks, which has attracted market attention. At present, Sunong Commercial Bank has launched an internal investigation and will announce relevant matters later.
On August 8, the National Association of Trading Companies announced that recently, in the cases investigated by the National Association of Trading Companies, some small and medium-sized financial institutions have violated regulations such as lending bond accounts and transferring benefits in treasury bond transactions. The National Association of Trading Companies has transferred some of the serious violators to the People's Bank of China for administrative penalties, and the National Association of Trading Companies is stepping up investigations into other clues of such cases.
Earlier, the NAFMII had already paid attention to the chaos in bond trading of small and medium-sized financial institutions. On April 12, the NAFMII announced that according to the feedback from market institutions, the NAFMII found that some small and medium-sized financial institutions were suspected of illegal holding and lending of bond accounts. In accordance with the "Interbank Bond Market Self-Discipline Rules", the NAFMII launched a self-discipline investigation on six small and medium-sized financial institutions.
Since the beginning of this year, some rural commercial banks have continued to buy treasury bonds, which has attracted the attention of regulatory authorities. The "China Monetary Policy Implementation Report for the First Quarter of 2024" issued by the central bank shows that in the first quarter, the interbank bond market traded 8.9 trillion yuan in 20-30-year bonds, an increase of about 5 times year-on-year. Among them, the transaction scale of rural financial institutions accounted for 24.8% of the interbank bond market, an increase of about 10.5 percentage points from the same period last year.
The yield of medium- and long-term government bonds continued to decline
Since the beginning of this year, affected by factors such as slow long-term bond supply and financial disintermediation, the yield of medium- and long-term treasury bonds has continued to decline (corresponding to higher bond prices), accumulating the risk of a reversal in the bond market. Wind data shows that the main contract of 10-year treasury bond futures has risen from 102.66 yuan at the beginning of the year to 106.55 yuan on August 5, the highest point this year; the main contract of 30-year treasury bond futures has risen from 101.24 yuan to 113 yuan on August 5.
According to Wind data calculations by The Paper, since the beginning of the year, the price of the main contract of 10-year Treasury futures has risen by 2.59%, and the price of the main contract of 30-year Treasury futures has risen by 8.79%.
The price data of the main contract of 10-year Treasury bond futures since July 1st is from: Wind
The price data of the main contract of 30-year treasury bond futures since July 1st is from: Wind
In response to this, the People's Bank of China has frequently spoken out and taken action to guide treasury bond yields upward.
On June 19, Pan Gongsheng, governor of the People's Bank of China, pointed out at the Lujiazui Forum that at present, special attention should be paid to the maturity mismatch and interest rate risk of some non-bank entities holding a large number of medium- and long-term bonds, maintaining a normal upward-sloping yield curve, and maintaining the market's positive incentive effect on investment.
On July 1, the People's Bank of China announced that in order to maintain the stable operation of the bond market, based on prudent observation and assessment of the current market situation, it has decided to conduct treasury bond borrowing operations for some primary dealers in open market operations in the near future. According to the Financial Times, many experts interviewed said that the central bank's announcement to borrow and sell treasury bonds is a manifestation of maintaining exchange rates and stabilizing expectations. Treasury bond trading is an integral part of the adjustment of the monetary policy framework, which is conducive to better play the role of the interest rate regulation mechanism. Wind data showed that as of the close of the day, the main contract of 10-year treasury bond futures fell 0.37% to 104.975 yuan; the main contract of 30-year treasury bond futures fell 1.06% to 108.44 yuan.
Since the announcement of the central bank on July 1, the prices of the main contracts of 10-year and 30-year treasury bond futures have been on a downward trend. On July 8, the main contracts of 10-year and 30-year treasury bond futures closed at 104.88 yuan, and the main contracts of 30-year treasury bond futures closed at 108.08 yuan, both of which were stage lows. But the good times did not last long, and the prices of the main contracts of 10-year and 30-year treasury bond futures subsequently began to show an upward trend. On July 19, the price of the main contract of 10-year treasury bond futures has basically recovered to the level before the announcement on July 1.
On July 22, the People's Bank of China announced that in order to increase the scale of tradable bonds and ease the pressure of supply and demand in the bond market, starting from this month, medium-term lending facility (MLF) participants with the need to sell medium- and long-term bonds can apply for a phased reduction of MLF collateral. Industry experts pointed out that the phased reduction of MLF collateral is conducive to balancing the supply and demand of the bond market. Wind data showed that on that day, the main contract of 10-year treasury bond futures rose 0.27% to 105.82 yuan; the main contract of 30-year treasury bond futures rose 0.33% to 109.41 yuan.
On August 7, after the Financial Market Institutional Investors Association launched a self-discipline investigation into four rural commercial banks in Jiangsu, the main contracts of 10-year and 30-year treasury bond futures have fallen for three consecutive trading days.
The Paper reporter Lin Qianbing
(This article is from The Paper. For more original information, please download the "The Paper" APP)
