Bonds News
- CSRC to give nod to firms''bond issues
Date: 28-May-2007 Sources: (Shenzhen Daily)
THE China Securities Regulatory Commission (CSRC) will soon start approving bond issues by domestically listed firms, domestic media reported, a move analysts say will speed up the growth of the country's corporate debt market.
Fan Fuchun, CSRC vice chairman, revealed the plan at a domestic financial forum Friday, according to front-page reports in major domestic securities newspapers. No other details were given.
Analysts have said the current regulatory framework governing corporate bond issues in China could be reformed this year to help accelerate fund raising by domestic listed companies.
Authority for approving issuance of long-term corporate bonds could pass from the National Development and Reform Commission (NDRC), the country's top economic planner, to the CSRC, analysts say.
Under the current system, issuance of bonds with maturities above one year must be approved by the NDRC, while the CSRC approves issues of listed firms' convertible bonds, and the central bank is in charge of short-term corporate bills of one year or less.
The NDRC has been blamed by some analysts for the slow development of China's corporate bond market, which accounts for a fraction of total corporate fund raising.
It typically takes an enterprise 12-18 months to win approval for a quota to issue bonds, and only very large companies can meet the strict requirements, analysts say.
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