Final release for bonds

Author: | Published: 1 Jul 2007

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...