中证登提高质押回购门槛 控制交易所债券市场风险 - 2017年04月12日

NEW bond rules will go into effect in China tomorrow, and they aimed at easing risk in debt markets. The latest initiative comes none too soon. Corporate bond defaults rose in the first quarter.

China Securities Depository and Clearing Corp, which oversees promissory notes in the nation’s smaller exchange-traded market, will now restrict financial institutions to using only AAA-rated company securities as collateral for short-term loans, according to a document seen by Shanghai Daily.

That move will tighten liquidity in markets for lower-rated notes and junk bonds. It will make it harder for smaller companies to issue bonds on the stock exchanges, increasing their financing costs as bond yields go up, said Gao Chen, a bond market analyst at Shanghai Securities Exchange.