? ?
BIZCHINA / Top Biz News
CSRC: Time ripe to launch corporate bonds
By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-09-13 15:05
Time is ripe for China to launch corporate bonds and furthermore, the
interest rate hike expectations won't affect the trial issuance of bonds,
according to Tu Guangshao, vice chairman of the China Securities
Regulatory Commission (CSRC), the Shanghai Securities News reported today.
Tu said the CSRC would let foreign firms issue corporate bonds in China
when the appropriate time arises.
Related readings:
?First corporate bond lined up
?Corporate bond issuance may hit 100b yuan this year
?CSRC will approve corporate bond issuance
Special Coverage:
Markets Watch??
Tu also said the development of corporate bonds can help improve the
direct financing percentage and develop a multi-layer capital market.
According to a rule released by the CSRC to guide the issuance of
corporate bonds last month, only companies listed overseas and on the
Shanghai and Shenzhen exchanges are allowed to issue corporate bonds. A
number of companies have put forward plans for corporate bonds issuance.
Tu stressed that interest rate hike expectations won't impact long-term
development of corporate bonds, although it will affect different listed
companies' issuance times.
The CSRC will encourage companies to issue corporate bonds by different
means to allow more investors to participate in the market.
Trust companies can act as trustees when entering the corporate bonds
market, Tu said. They are expected to have more opportunities in the
corporate bonds businesses as the market develops.
Currently, only a handful of large State-owned enterprises approved by
the National Development and Reform Commission can issue such bonds. The
price and amount of bonds issued are decided by the commission, and the
State commercial banks are also required to underwrite the bonds.
Just 283.1 billion yuan (US$37.5 billion) of corporate bonds had been
issued by the end of last year, accounting for only 1.35 percent of gross
domestic product, far lower than the 40 percent in the United States and
17 percent in the Republic of Korea.
(For more biz stories, please visit Industry Updates)
Learn Chinese, Chinese Online Class
No comments:
Post a Comment