Chinese CDS: stalled but alive

Author: | Published: 20 Jul 2010
CDS’ fate is being decided behind closed doors

Plans to introduce credit default swaps (CDS) to China have been delayed, following a disagreement between two key regulators. But lawyers hope to see a pilot scheme before the end of the year – as the first step to legitimising a market that already exists.

The People's Bank of China is overseeing a working group to introduce CDS to the country. However, it has reportedly run into opposition from China Banking Regulatory Commission (CBRC) – which is responsible for approving products,...