Rash of Debt Defaults Should Spur Regulators to Act

Financial markets have been jolted by a number of defaults on corporate debt in recent weeks, with state-owned Dongbei Special Steel Group Co. missing a 700 million yuan repayment on May 5.

As creditors count their losses, the string of defaults underscores an urgent need for authorities to improve their oversight of the debt market through better risk controls and effective restructuring remedies.