CSRC allows issuance of exchange-traded bonds

The China Securities Regulatory Commission (CSRC) has lifted its 10-month ban on issuing exchange-trade corporate bonds, the Wall Street Journal reported. The CSRC has approved Shanghai Yuyuan Tourist Mart’s application to issue US$73.2 million worth of bonds. They will be sold on the Shanghai Stock Exchange on Friday. The lifting of the ban comes after the CSRC allowed for the resumption of IPOs last month. Prior to the halt in bond issues, nearly 40 companies, including PetroChina and China Petroleum and Chemical Corp, had gained regulatory approval to issue approximately US$20.5 billion worth of bonds. Dong Chengjiang, a bond analyst with Shenyin Wanguo Securities, said he expected companies to issue US$17.6 billion to US$26.3 billion worth of bonds this year.