Core Viewpoint - The China Interbank Market Dealers Association has issued a notice to strengthen the regulations on bond issuance and underwriting, addressing issues such as low underwriting fees, price distortion, and improper benefits among market participants [1][2][3] Group 1: Key Issues Addressed - The notice specifies four main issues, prohibiting issuers and underwriters from pre-agreeing on bond issuance rates and using "rebates" to distort market prices [3][4] - Underwriters are required to conduct fair pricing and comply with the disclosed methods for determining underwriting rates, ensuring that balance underwriting does not crowd out effective subscription sizes [3][4] - The notice emphasizes that underwriters must not quote underwriting fees below cost when participating in bond project bidding [3][4] Group 2: Self-Regulation and Monitoring - The association will implement self-regulation in the interbank bond market, regularly monitoring bond issuance and underwriting activities, and will take disciplinary actions against violations [4][10] - In 2023, the association issued multiple documents reinforcing the prohibition of price manipulation and low-cost underwriting practices [4][10] Group 3: Historical Context and Violations - Despite existing regulations, violations such as rebate practices remain prevalent in the market, with past cases highlighting the misuse of rebates to distort market pricing [6][7] - In 2023, a case involving a private fund that withdrew bids after failing to secure rebates was noted as a significant disruption to the issuance order [7][8] Group 4: Disciplinary Actions - The association has imposed self-regulatory penalties on multiple institutions for various non-compliant behaviors, with 88 disciplinary actions taken in the previous year [10][11] - Specific institutions, such as Hubei Bank and Zhejiang Bank, faced penalties for failing to adhere to fair issuance principles and for improper management of raised funds [11][12]