Safeguardstightenedagainstbonddefault

中文HomeNewsEcns WireBusinessTravelPhotoVideoVoicesRIGHT BGLINEText:AAAPrintEconomySafeguards tightened against bond default12020-11-23 08:20:15China Daily
Editor: Li Yan
ECNS App DownloadA clerk counts cash at a bank in Huaibei, Anhui province. (Photo provided to China Daily)Chinas top body guiding financial regulation has called for intensifying the crackdown on defaulting on repayment of bonds to protect investors and minimize financial risks.
The State Councils financial stability and development committee released a statement one day after Saturdays meeting saying China will show “zero tolerance” for avoiding bond repayment and other bond market violations.
“We will intensify investigation of risks and hidden dangers while keeping liquidity reasonably ample, firmly safeguarding the bottom line of avoiding systemic financial risks,” the statement said.
At the meeting, presided over by Vice-Premier Liu He, Chinas bond market was said to be in good overall shape with improvement in serving the real economy, but cases of default have increased recently as a result of cyclical, institutional and behavioral factors.
In response, regulating entities were called on to better protect investors legitimate rights and, in accordance with laws, strengthen the crackdown on violations such as fraudulent issuance, disclosure of false information, malicious transfers of assets and diversion of proceeds from issued bonds to other purposes.
China will continue to promote sustainable, healthy development of the bond market and properly deal with the relationship between development and risk prevention, abiding by the principle of market-oriented, rules-based and internationalized practice, the statement said.
Regulators and self-regulatory bodies have stepped up efforts to fight potential wrongdoing in recent bond defaults by State-owned enterprises and to strengthen early detection and resolution of default risks.
The China Securities Regulatory Commission, the top securities regulator, announced on Friday it would undertake a formal investigation into potential information disclosure violations of Brilliance Auto Group Holdings and related intermediary institutions.
The industrial group, based in Liaoning province, defaulted in late October on a corporate bond with principal worth 1 billion yuan ($152.4 million). This was followed by a default of Yongcheng Coal &Electricity, based in Henan province.
The National Association of Financial Market Institutional Investors, a self-regulatory body of the interbank market, said last week that a few market intermediaries may have engaged in wrongdoing related to Yongchengs default and it will conduct further investigations.
The National Development and Reform Commission will strengthen the detection of early-stage risks of bond defaults and urge related entities to find a solution and protect the rights of investors, it said on Tuesday.
Financial regulators and local governments should better supervise market entities in meeting their obligations, while the issuers and market entities must strengthen compliance, the statement released Sunday said.MorePhotoDutch zoo releases new photos of giant panda cubTibets Nyingchi holds archery competition to celebrate Gongbo New YearHeavy rain and snow hit Changchun, northeast Chinas JilinNorthern Lights in IcelandMarvel Avengers S.T.A.T.I.O.N. exhibition to open to public in TorontoSpecial security measures to prevent bird flu be taken in BrugesJinshanling Great Wall covered by snowfallPeople celebrate Gongbo New Year in Nyingchi, TibetSnow turns Xinjiang grassland into picturesque wonderlandTemperature in Shanghai breaks record over same periodOver 1,000 mandarin ducks migrate to Zhanghe River for winter Staff conducts maintenance work at Sea Life Center in Birmingham10th Guangzhou International Light Festival kicks offPrincipal of school trains hundreds of wrestlersTAMASHII Figure FES 2020 held in Hong KongAnimal paintings on trunk vivify Nanjing cityAfter decades in UK, 68 relics return to ChinaKakapo crowns New Zealands Bird of the Year for 2020Paris uses sheep as eco-friendly lawn mowersChina to launch Change 5 mission with Long March 5 rocketAncient wedding ceremony held in GuiyangRestored ancient clocks unveiled at Shenyang Palace MuseumInternational students in Guangxi join online shopping spreeSnow leopard spotted in SW ChinaFlat fire in Yau Ma Tei put out, at least 7 dead and several others injuredNASA, SpaceX launch first crew rotation mission to space3D-paper carving artist in E ChinaChina launches new mobile telecommunication satelliteRare Bigfin Squid sighted in Australian waters for first timeElderly man creates super-long silk scroll paintingZipper boat makes waves at an exhibitionAquaculture farming areas in Lianjiang, FujianVirgin Hyperloop test in Las Vegas, NevadaA rainbow footpath built in a forest in FuzhouTourists visit chrysanthemum park at Luanxie Village in Shahe, HebeiLEGO Group releases several worlds first toy sets at 3rd CIIEMost popular in 24h$(function () {$.ajax({type: “get”,dataType: “json”,url: “/part/6/ecns_rank24h.json”,success: function (status) {var str = “”;$.each(status,function(index,obj){obj.title = obj.title.replace(/'/g, ');str +=+obj[“title”]+;});$(“#rank24″).html(str);},error:function(status){}});});MoreTop newsXi expounds on sustainable development at G20 meeting U.S. withdraws from Open Skies Treaty, Russia hopes remaining parties meet commitments Xi pledges joint efforts to build beautiful world free of poverty Development holds master key to solving poverty problems: Xi Xi urges efforts to improve developing countries capability of independent poverty reductionMoreVideoCreativity wows visitors to Exhibition of InventionsChengdu wall covered in 3D archeological paintingsLINEMedia partners:Peoples Daily Online|Xinhuanet|China.org.cn|ChinaDaily.com.cn|CGTN|Globaltimes.cn|Chinaplus.cri.cn|Shine.cn|JSCHINA|
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