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[As of the end of June 2024, the size of China's bond market reached 16.5 trillion yuan, more than 30 times the size 20 years ago, and currently accounts for about 125% of GDP.]

Starting from scratch, China's bond market has become the second largest in the world after continuous practice and exploration. It has embarked on a development path that is in line with the general rules of the bond market and has Chinese characteristics. By the end of June 2024, the scale of China's bond market reached 16.5 trillion yuan, an increase of more than 30 times compared with 20 years ago, and currently accounts for about 125% of GDP. As China's economic structure adjusts and moves towards a stage of high-quality development, the macro-control framework is gradually transforming, and the financial industry is also undergoing profound changes.

Over the past year, a large amount of funds have poured into the bond market, the central bank has warned of long-term government bond interest rate risks, and the National Association of Trading Companies has recently launched a self-discipline investigation into several financial institutions, which has attracted attention from all parties and various "small essays" have frequently appeared.

How do you view the recent risk warnings issued by the central bank and the self-regulatory management of the National Association of Financial Market Institutional Investors (NAFMII)? Recently, a reporter from China Business Network interviewed Xu Zhong, deputy secretary-general of NAFMII.

First Financial Daily: Why does the central bank remind people of the risks of long-term government bond interest rates?

Xu Zhong: My understanding of this is that whether from the perspective of macro-control to stabilize expectations or from the perspective of macro-prudential management, the rapid decline in long-term treasury bond interest rates is an issue that the central bank must pay attention to. From the perspective of macro-prudential management, the central bank monitors and assesses market risks and takes appropriate measures to weaken or hinder the accumulation of risks. This is an important responsibility of the central bank. Since the beginning of this year, a large amount of funds have poured into the bond market, resulting in a narrowing or even flattening of the term spread and credit spread in the bond market. The long-term treasury bond interest rate has deviated from the reasonable range and has a tendency to bubble to a certain extent. In view of the accumulating bond market risks, especially for small and medium-sized financial institutions with weak risk control capabilities, the central bank has the responsibility to issue risk warnings.