NDRC to ease corporate debt controls as bond issuance soars

The National Development and Reform Commission said AAA-rated notes or securities whose issuers have AAA scores could be waved from internal review procedures, Bloomberg reported, citing a statement published to the commission’s website. The regulatory easing comes as Premier Li Keqiang encourages more bond offerings to help stem an ongoing economic slowdown. Chinese companies have sold a record RMB6.79 trillion (US$1.06 trillion) of notes this year, already 14% more than all issuance in 2014. While sales from local government financing vehicles slumped after authorities increased scrutiny of their borrowings, the new tweak could prompt “an explosive increase” in such offerings, according to Western Securities.