Chinese bond market regulators will conduct unified law enforcement in response to violations in the fast-growing market.
The central bank and the top economic planner will play a supporting role in the law enforcement of the China Securities Regulatory Commission (CSRC), according to a document jointly released by the three regulatory bodies.
The CSRC is responsible for identifying illegal activity, including insider trading and manipulation in transactions of bonds on the interbank and exchange bond markets, and imposing punishment on violators.
The People's Bank of China and the National Development and Reform Commission support CSRC law enforcement, providing professional advice and helping discover evidence of violations.
The integration will improve the regulatory system and help prevent systemic risk, according to the document.
China is the world's third largest bond market, with outstanding bonds worth 83.8 trillion yuan (around 12 trillion U.S. dollars) as of the end of October.