People’s Bank of China permits lend and borrow bonds.

People's Bank of China permits lend and borrow bonds. According to a Reuters report, China's central bank announced on Monday that Chinese banks will be permitted to lend and borrow bonds in the inter-bank market from Nov 20. Banks will also be allowed to borrow or lend securities for a maximum of 365 days. The measure is expected to boost liquidity and facilitate short selling, thereby reducing price swings and improving the efficiency of the market. At present, short selling is difficult and risky; owing to poor liquidity.