SHANGHAI, Reuters Two Chinese money brokers said that they will ensure anonymity in the bond quotation process, after traders said some in the market had been avoiding state banks as trading counterparts amid fears of regulatory scrutiny over reckless bondbuying.

Tullett Prebon SITICO China Ltd and CITIC Central Tanshi said late on Friday that they would strictly adhere to regulatory guidelines for anonymity and confidentiality in quotation and trading to ensure market fairness.

Market participants have said that some traders have been selecting their longterm bond trading counterparts by adding a special tag such as no state banks during the quotation process, an attempt to avoid revealing what they are buying or selling to state banks.

This comes as Chinese authorities have increased scrutiny over brokers and banks39; bond dealings and stepped up warnings about the risk of reckless bondbuying in recent weeks moves that appear to have halted a long, frenzied bond rally.

But the Financial News, backed by the People39;s Bank of China, pushed back on Saturday against claims that the central bank was intervening in the market through administrative measures.

As long as institutions trade in accordance with market principles and rule of law, the regulators will not directly intervene, the newspaper cited an industry source as saying.

The tagging practice is hurting liquidity in the bond market, with trading volume of longdated sovereign bonds dropping sharply since…