China introduces when-issued trading for government debt

SHANGHAI, Aug 28 (Reuters) - China will allow participants in its interbank bond market to trade government debt ahead of its issuance, its foreign exchange market operator said on Monday.

The introduction of so-called "when-issued" trading for Chinese treasuries will have benefits for price discovery and strengthening of the government bond yield curve, the China Foreign Exchange Trade System (CFETS) said in a statement on its website.

When-issued debt refers to debt that has been announced but not yet issued.

All participants in China's interbank bond market will be able to conduct when-issued trading on Chinese government bonds from four working days before their issue date until one working day before, the statement said.

CFETS will issue announcements five working days before each government debt issuance, the statement said. (Reporting by Andrew Galbraith; Editing by Jacqueline Wong)