Bonds Feb 18

CITIC issues advice for outbreak

Among the recommendations contained in the financial group’s 2020 ratings outlook, CITIC said the focus of urban investment bonds should be on counter-cyclical adjustments.

by Chris Gill

China should be cautious in implementing changes to the bond market during the Covid-19 outbreak, CITIC has said.

Among the recommendations contained in the financial group’s 2020 ratings outlook, CITIC said the focus of urban investment bonds should be on counter-cyclical adjustments, expiration of exercisable bonds and issuance of local bonds. 

Changes in real estate policies are needed to enable the issuance of property-based bonds, the report said, stressing the need for firms to focus on liquidity risks and to adjust the scale of some projects.