China Expected to Relax Bond Issuance RulesChinese regulatory authorities will loosen their control on the corporate bonds issuance procedure under a new management provision that is expected to come out by the end of the yearThe State Development Planning Commission will no longer limit the issuance volume of corporate bonds under the new provision, nor will it examine and give opinion on every issue, said a senior financial expert. "The liberalization of the corporate bonds issuance is the government's effort to reduce administrative power on corporate bonds and subject them to the market demand, which is in line with the international practice," Dong Chen, an analyst with the China Securities, was quoted as saying. He added that the securities watchdog turns down about 40 percent of applications every year, and the to-be-established second board will also be too crowded with over 2,000 companies on the waiting list. Experts said the rescinding of government limitations will significantly stimulate the development of China's corporate bonds market with issuance volume increasing by several folds every year in the future. |
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