"China Securities Journal: China Trading Association introduces new regulations to curb low-price competition in underwriting, but the effect still needs to be observed."

Recently, the China Interbank Market Trading Association issued new regulations on underwriting quotations, explicitly prohibiting lead underwriters from participating in bond project bidding with underwriting fees below cost. Industry insiders believe that the low bid event in the previous Guangfa Bank's subordinated capital bond underwriter tender has become an important trigger for this round of rectification. However, although the new regulations have sent a signal to curb unreasonable competition, the effectiveness is still to be observed in the backdrop of the large scale of financial bond issuance and complex market landscape.