China’s central bank issued new guidelines for the bond market that seek to limit leverage ratios and ban transactions designed to circumvent regulations.

FILE PHOTO: China World Trade Center Tower III (L) and China Zun Tower under construction are pictured behind a Chinese flag in Beijing’s central business area, China December 14, 2017. Photo: REUTERS/Jason Lee

In a joint statement signed by the People’s Bank of China and other financial security regulators, the central bank said bond market participants must strictly abide by liquidity and leverage ratio requirements.