Banking

China considers allowing private corporate bond issues

(Agencies)
Updated: 2010-07-09 14:02

SHANGHAI: China is considering allowing non-finance corporates to sell bonds privately to investors, local media reported on Friday, citing unidentified sources at the National Association of Financial Market Institutional Investors.

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Corporate bond issuance through private placements would help China to develop its bond market, the Securities Times said, without giving details on the timing of the development.

Currently, the government only allows companies to issue bonds via public sales.

The authorities have long said they aim to reform the nascent bond market to wean companies away from their reliance on bank lending and amid challenges to raise funds from this year's sliding stock market.