The chairman of China Construction Bank (0939.HK, 601939.SH), the country’s second-largest lender, has suggested that China introduce "junk" bonds as a means of opening up funding channels for smaller companies. Guo Shuqing told the Financial Times that, while his idea "may be a little bit radical," it would help private start-up and early-stage enterprises raise money. Such companies are often denied funding by the large state-owned banks. Junk bonds – a kind of high-yield, high-risk corporate bond – are not currently permitted in China, but Guo believes there is a place for them as the country’s debt capital markets develop. Corporate bond issuance rose nearly 87% in 2009 to US$230 billion on the back of Beijing’s stimulus plan. Despite this increase, bonds still only account for 13% of corporate financing compared to 82% from banks and 5% from the equities market.