China to Open Junk Bond Market

(Beijing) – The China Securities Regulatory Commission is set to roll out high-yield, speculative bonds, a source inside the agency told Caixin.

As part of preparations, the China Securities Regulatory Commission is looking to first roll out regulations for private placement corporate bonds, which have higher-than-average yields.

The move is designed to cater to the growing appetite among Chinese investors with higher risk tolerance and marks significant progress toward embracing financial innovations which have been an effective investment tool in developed capital markets.