Sealand Securities Forgery Saga Expected to Result in Wider Bond Market Reform
December 26, 2016
The biggest news out of China this week surrounds the ongoing forgery saga at Sealand Securities. Bowing to regulatory pressure, Sealand will honor losses resulting from the forged contract stamps, resulting in a potential RMB 16.5 billion write-down. As the epicenter of China’s bond market meltdown, the firm’s movements are being closely scrutinized by onlookers. Market watchers believe that major bond market reforms will result from the episode.
In addition, Premier Li’s veto of a proposed reduction in the annual USD 50,000 currency conversion quota sends an important message signaling the government’s support of capital account openness.
Topics covered: Bond Market Turmoil, Capital Controls, Wealth Management Products
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