Authority transfer may boost bond market

Authority over China's ailing bond market may be transferred from the conservative National Development and Reform Commission (NDRC) to the more progressive China Securities Regulatory Commission (CSRC), the South China Morning Post reported. Quoting sources, the newspaper said the shift is expected this weekend when the Chinese cabinet participates in the National Finance Working Conference to decide the direction of the financial sector over the next five years. The move is a blow for the government's main planning agency but may help the bond market, which is almost non-existent. The CSRC will set basic requirements but will not have quota limits or require companies to lobby for approval, the newspaper reported. The NDRC is expected to keep its approval authority over bonds issued by large state-owned enterprises that have not incorporated as shareholding entities.