Corporate Bond Listing Phase in StandardizationNew corporate bond rules of Shanghai and Shenzhen stock exchanges will be enacted on September 1 which symbolizes China's corporate bond listing is phasing in standardization.For a rather long period of time, the corporate bond listed were all of small scale and unitary type which could not cover issuer's demand on capital. In 1999, the total issued 42 billion yuan corporate bond only possessed 0.51% of 8205.4 billion yuan GDP. While in U.S., the ratio was as much as about 3%. The U.S. corporate bond was 5.8 times of stock issued the same year. More than that, the developing of corporate bond market is laggard with only one or two central level enterprises listing their bond in Shanghai and Shenzhen stock exchanges. Curb exchange could not been conducted at all. From foreign experience, most of the corporate bond are traded at curb. So the promulgation of Corporate Bond Listing Rules will appropriately serve the standardized development of China's floor exchange and prepare for the curb exchange of the curb exchange. The new rules is different from the former one on the following aspects: First the applying qualification of bond to be listed are more stringent. Second more specified requirements for information disclosure of listing corporate. Third the listing recommender system has been introduced. Forth regulations on listing bond's suspension has been stipulated. (Panorama) |
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