Caixin
Jan 18, 2018 02:57 PM
FINANCE

Regulator Raises Bar for Privately Placed Bonds

The  China Securities Regulatory Commission has barred the country’s brokerages from underwriting privately placed bonds for companies whose key subsidiaries have defaults on their records. Photo: Visual China
The China Securities Regulatory Commission has barred the country’s brokerages from underwriting privately placed bonds for companies whose key subsidiaries have defaults on their records. Photo: Visual China

China’s top securities watchdog recently raised the bar for companies issuing bonds through private placements.

The move is the latest sign that the China Securities Regulatory Commission (CSRC) is tightening its grip on the corporate bond market in the wake of several default scandals that undermined investor confidence.

The CSRC barred the country’s brokerages from underwriting privately placed bonds for companies whose key subsidiaries have defaults on their records, and to shelve issuances for companies that have received warnings or fines from stock exchanges or self-regulatory bodies within the last six months, according to a regulation amendment sent to securities firms on Jan. 15. Caixin has seen the document.

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