The Shanghai Stock Exchange is to launch a key measure as part of a nationwide pilot program covering the pre-issuance of treasury bonds, the SSE said in a circular on Tuesday.

The pre-issuance of treasury bonds allows the purchase and sale of bonds from the fourth statutory working day to the first statutory working day prior to the bidding day of treasury bonds.

The pre-issuance of treasury bonds must be settled before the listing day, according to a notice from the Ministry of Finance, the People's Bank of China, and the China Securities Regulatory Commission.

Analysts said introducing the pre-issuance of treasury bonds will help liquidity in the T-bond market.

The participants in the pre-issuance of treasury bonds should have a certain amount of experience regarding investment in securities and risk tolerance capability, said analysts.