China's "asset famine" hinders central bank's return to treasury bond market after 17 years.

China's "asset famine" is impeding the central bank's plans to improve monetary policy efficiency through a return to the treasury bond market after 17 years. The People's Bank of China aims to deepen the bond market by adding treasury bond buying and selling to its toolkit, but a scarcity of low-risk assets, due to the government's reliance on riskier local government issuers, is obstructing these efforts.

May 27, 2024
7 Articles