China issued new guidelines on corporate bonds to unify rules for the country’s bond markets and reiterate the application of the Securities Law to bond issuance, Caixin Global reported.
The document consists of 32 articles and covers issues including preventing regulatory arbitrage, restricting bond sales by highly leveraged companies, banning companies from buying their own bonds, and improving oversight of credit rating agencies, Caixin reported. The new rules stress the need for companies and people to obey regulations in the wake of scandals and defaults, such as those that hit the bond market late last year, the story added. Full story: Caixin Global.
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