China’s Stock Exchanges Tighten Bond Issuance Rules for Producers of Coal, Steel

(Shanghai) — China’s stock exchanges in Shanghai and Shenzhen have tightened restrictions on overcapacity companies seeking to issue corporate bonds, a move aimed to curb market gluts.

According to letters sent to underwriters on Friday and Monday by the Shanghai and Shenzhen stock exchanges respectively, coal mining companies will not be allowed to issue corporate bonds if they have expanded, failed to reduce overcapacity, illicitly opened coal mines or been the target of production-safety concerns.