China opens up secondary loan market in bid to reduce systemic risk

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China has allowed banks to sell loans on the nation's interbank market for the first time, in a move aimed at reducing financial risk and helping banks to meet stricter capital requirements.

The People's Bank of China (PBoC) signed agreements with 21 banks, including the likes of Industrial and Commercial Bank of China (ICBC), HSBC and China Construction Bank (CCB), to join the new transfer system, which was launched on Saturday.

Chinese commercial banks can conduct loan transfers on the

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