China's Credit Bond Market has Seen A Milestone Regulatory Document
China's Credit Bond Market has Seen A Milestone Regulatory Document.
On August 18, the People's Bank of China and six other departments jointly issued the "Guidance on Promoting the Reform, Opening-up and High-Quality Development of the Corporate Credit Bond Market", which puts forward specific opinions on promoting the reform and opening-up and high-quality development of the corporate credit bond market in ten aspects, including promoting the convergence of issuance and transaction management classifications, strengthening investor appropriateness management, enhancing the supervision of credit rating agencies and improving the pricing mechanism.
The "Opinions" proposed to promote the study and formulation of corporate bond management regulations, classification and convergence to promote the issuance, trading and other rules and standards gradually unified, and prohibit structured bond issuance; construction of the default rate as the core of the rating quality verification method system; coordination and synchronization of inter-bank and exchange bond market opening to the outside world, unified access to foreign institutional investors and cross-border management of funds.
The Opinions also stressed that bond issuance should be consistent with national macroeconomic development and industrial policies; to distinguish the credit boundaries of the government, local government financing platforms and other different entities, to prevent the risk of hidden debts of local governments; strictly punish illegal and illegal acts such as misappropriation of the issuer's assets, and seriously investigate and deal with all kinds of debt evasion.
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