China central bank plans new metrics to rein in banks’ long-dated bonds holdings, sources say

SHANGHAI, Sept 14 (Reuters) – China’s central bank plans to introduce new metrics into its Macro Prudential Assessment framework, aiming to curb banks’ excessive holdings in long-dated bonds and funds that could heighten investment risks, sources familiar with the matter said on Monday.

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The plan also includes measures tracking deviations from money market and bond yields, the people said, declining to be identified as they were not authorised to speak to the media.

The specific benchmarks for the metrics are still being discussed with the industry and are subject to consultation, and have not been finalised, the sources said.

China’s bond market has been rallying this year, decoupling from a global selloff, as lacklustre economic data fuelled expectations of more policy support.

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The 10-year yield was 1.68% on Monday, hovering near its lowest since July 2025, while the 30-year yield was 2.17%.Prices rise when yields fall.

The PBOC did not immediately respond to a request for comment.

Market participants said some small banks could exceed the limits on bond investment duration and fund investments, and may face pressure to adjust their bond portfolios.

The MPA framework, formally implemented by the PBOC in 2016, is a key part of China’s “dual-pillar” regulatory approach combining monetary policy and macro-prudential policy.

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(Reporting by Reuters, Editing by Louise Heavens)

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This story was originally published September 14, 2026 at 6:20 AM.