NAFMII Probes Jiangsu Banks for Treasury Bond Manipulation and Interest Transfer

Aug 8, 2024, 02:51 AM

China's National Association of Financial Market Institutional Investors (NAFMII) has initiated an investigation into four rural commercial banks in Jiangsu province for suspected manipulation of treasury bonds. The probe, which is being conducted under the guidance of the People's Bank of China, focuses on potential market manipulation and interest transfer in the secondary market trading of government bonds. Shares of Changshu Rural Commercial Bank, one of the banks under investigation, are set to open nearly 3% lower following the news. The investigation has led to the suspension of government bond trading by some banks, as directed by the Jiangsu Rural Credit Union. NAFMII has uncovered violations such as the lending of bond accounts and the transfer of benefits, and has transferred these cases to the People's Bank of China for further action.