Beijing may allow corporate bonds to be once again issued on mainland stock exchanges, Dow Jones reported, citing a source familiar with the situation. Concern over the markets’ ability to handle new supply led Beijing to impose an unofficial moratorium on the issuance of corporate bonds in September. Initial public offerings have also been suspended. Bond issues would resume after the publication of new rules regarding exchange-traded corporate bonds by the Shanghai and Shenzhen stock markets, the source said. Exchange-traded bonds, one of three categories of bonds in China’s corporate bond market, are overseen by the China Securities Regulatory Commission and are usually sold by listed companies. The resumption of corporate bond issuance is seen as a sign of Beijing’s increased confidence in the resilience of the market.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved