Core Viewpoint - The People's Bank of China (PBOC) announced adjustments to the evaluation method for primary dealers in the open market, effective from 2025, with the current list of primary dealers remaining unchanged for that year [1][2]. Group 1: Evaluation Method Adjustments - The adjustment of the primary dealer evaluation is a crucial part of the transformation of the monetary policy framework [1]. - The evaluation indicators have been updated to better serve the monetary policy framework transformation, now categorized into four main categories with seven items, significantly reducing the number of indicators [1][2]. - The new evaluation emphasizes the importance of monetary policy transmission and bond market making, enhancing the role of primary dealers in financial intermediation [1][2]. Group 2: Market Stability and Compliance - The evaluation will assess the performance of institutions in stabilizing the market during periods of financial tension, focusing on the volume, price, and coverage of funds [1]. - The assessment of bond market making will include the institutions' quoting and transaction performance, particularly during periods of bond market volatility [2]. - Institutions that engage in improper conduct during the evaluation period will face suspension of their dealer qualifications, reinforcing compliance and discipline among primary dealers [2]. Group 3: Diversification and Institutional Roles - The revised evaluation method will implement differentiated assessments for various types of institutions, promoting diversity among primary dealers [2]. - This change aims to enhance the effectiveness of different types of institutions in supporting the central bank's macroeconomic regulation, policy transmission, and tool innovation [2].