China lowers bar for bond issue

The People’s Bank of China (PBoC) announced on Friday that Chinese companies can now issue bonds below US$73 million in the national inter-bank bond market, state media reported. The announcement lowers the original market entry threshold, set in 2004. The move is hoped to facilitate capital raising by small and medium-sized enterprises (SMEs), which have traditionally faced difficulties accessing credit and loans by other means. The PBoC said it will carry out short-term trial bonds for SMEs in 2009, and is also considering issuing high interest bonds and SME united bonds.