It's been a busy month for China's corporate bond market, in
legal developments if not issuance. Potential bond issuers, so
long reliant on costly bank loans from State Owned Enterprises
(SOEs) for their debt financing, should finally get the boost
they have been waiting for.
Since January, when rumours emerged of a regulatory switch
from the country's conservative National Development and Reform
Commission (NDRC) to the more liberal China Securities
Regulation Commission (CSRC), China has been waiting for its
corporate bond market to open up.
Hampered by the NDRC's obstructive quota system, (which
approved giant SOEs' issuances and few others) and threatened
by investors' passion for the country's bubbling equity
markets, the news in January of the regulatory switch was
thought to be just the ticket.
Official confirmation didn't...