China is currently revising the Regulations on Management of Corporate
Bonds, and three major changes are expected. Changes are to be made
to the approval system in bond issuance, allowing more market forces
into corporate bond issues and interest rates, and making clear
the credit rating differentials of corporate bonds. At present there
are still some defects in corporate bond issue and management in
China. Some enterprises lure investors by offering high yields or
using guarantee of government departments when they issue corporate
bonds;
The credit rating system is not healthy, and the reputation of intermediaries
is poor;
There is no decision making control system when enterprises decide
to issue corporate bonds;There is no scientific pricing system for
corporate.bonds;The enterprises have not become the mainstay of
the corporate bond market, which is still guided and controlled
by the government; The investors are not mature. |
