Top Economic Planner Tightens Rules on Issuing Enterprise Bonds

(Beijing) – China's top economic planner issued a notice on October 15 raising requirements for enterprise bond issuance in a bid to better control risks facing local governments.

The document issued by the National Development and Reform Commission (NDRC) provided details for a policy announced on September 26 to tighten risk control on the market.

Enterprise bonds are debts issued by government agencies or state-owned companies that are usually used to finance major government-backed projects. The issuances have required the approval of the NDRC since 1987.