Bond market to open to foreign firms ‘in months’

14:12, May 20, 2010      

Email | Print | Subscribe | Comments | Forum 

Foreign companies may be allowed to sell bonds in China without using local units within months as the government expands capital markets, said UBS Securities Co., the No. 3 underwriter of domestic corporate debt this year.

“We have many clients around the world who are very interested in issuing bonds in China for their expansion on the ground,” said Simon Jin, managing director and head of fixed income for UBS Securities in Beijing.

The China Securities Regulatory Commission said in December the country will expand its corporate bond market, after the National Association of Financial Market Institutional Investors said Asian companies may be allowed to start sales.

Overseas firms remain restricted from selling yuan-denominated notes in China, five years after the Asian Development Bank and International Finance Corp., both supranational agencies, sold the first so-called Panda bonds.

“My view is that will change,” he said. “You will see probably see more Panda bonds this year.”

Authorities in Beijing are expected to simplify rules for issuing bonds, improve the quality of local credit ratings services and boost coordination between government departments, said Jin.

UBS has underwritten seven corporate bond issues in China this year totaling 10.4 billion yuan (US$1.5 billion), according to media data.

Bank of Tokyo-Mitsubishi UFJ (China) Ltd. said Monday it has approval to issue 1 billion yuan of bonds in China — the first local subsidiary of a foreign company to do so. HSBC Holdings Plc. sold yuan-denominated bonds through its China unit in Hong Kong last year.

Foreign multinational companies will likely get approval to issue yuan debt without using local subsidiaries, according to Jin.

Source: Shenzhen Daily


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A model presents a creation by Jannette Klein University, during the DFashion Mexico, Spring-Summer 2011-2012, in Mexico City, capital of Mexico, on Sept. 26, 2011. (Xinhua/Claudio Cruz)
  • The wax figure of actress Audrey Hepburn is seen at the Madame Tussauds Hong Kong in Hong Kong, south China, Sept. 27, 2011. The wax figure of Audrey Hepburn was unveiled in Hong Kong on Tuesday. (Xinhua/Chen Xiaowei)
  • Photo taken on Sept. 26, 2011 shows lighting illuminating the night sky in Guangzhou, capital of south China's Guangdong Province. The first Guangzhou International Lighting Festival kicked off here on Monday. (Xinhua/Shen Dunwen)
  • The graphic shows the schematic image of Chinese space station. (Xinhua/Lu Zhe)
  • The injured are wheeled to a hospital following a subway train collision in Shanghai, east China, Sept. 27, 2011. A subway train rear-ended another Tuesday afternoon in Shanghai.  Over 260 people injured in the accident were seen receiving treatment in hospitals as of 7:30 p.m. Tuesday, according to local authorities.(Xinhua/Liu Ying)
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
Hot Forum Discussion