Shenzhen Stock Exchange. Photo: AFP

Caxin reports Wednesday that, as of April 7, lower-rated corporate bonds are prohibited from being used as collateral for repurchase agreements. The lower-rated bonds include those rated below AAA or those sold by issuers graded below AA. The new rules won’t retroactively affect bonds issued before April 7. The move is part of a broader effort to reduce systemic risks associated with excessive leverage in the financial market.

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