Corporate Bonds


HK challenge over SOE default may impact foreign bond purchases

HK challenge over defaulted SOE may impact foreign bond purchases

(ATF) The effectiveness of a peculiarity of China’s corporate bonds market is being tested in a case that could impact foreign investment in Chinese credits.According to the Financial Times, at least two legal challenges are being made in Hong Kong focused on so-called Keepwell deeds. Known as “letters of comfort”, …

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New rules in China for corporate bonds and rating agencies

New rules in China for corporate bonds and rating agencies

(ATF) Chinese regulators have changed the registration system for the public issuance of corporate bonds.On February 26, the China Securities Regulatory Commission issued revised Administrative Measures for the Issuance and Trading of Corporate Bonds. These clearly implement a registration system for public issuance of corporate bonds and prohibit structured issuance, …

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Over $400 billion of China debt due in March-April

Over $400 billion of China debt due in March-April

(ATF) Corporate bonds worth close to 2.6 trillion yuan ($402 billion) are due within the next two to three months in China, according to S&P Global Ratings – news which has raised fears of more defaults by private and government issuers.The yuan-dominated corporate debt is due to mature in March …

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Chinese credits weather the storm

Chinese credits weather the storm

(ATF) Under normal circumstances a stumble in China’s bond market, the world’s second-biggest, would have triggered worries about cascading defaults or a massive exodus.But global investors say this is a mere hiccup as the pandemic has been speeding otherwise slow changes in the nation’s credit markets and conditions were right …

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China joins bond-market top table

China joins the bond-market top table

(ATF) China’s sovereign bonds have joined the ranks of some of the safest debt in the world, with investors willing for the first time to pay for the privilege of lending to the Beijing government.Huge demand for the nation’s debt saw investors bid down yields in the latest offshore sale …

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Wave of new China bonds cancelled as defaults trigger market panic

Wave of China bond issues cancelled as defaults trigger market panic

(ATF) A rolling thunderstorm of bond defaults has triggered a wave of bond cancellations, as a tumultuous market has begun to question everything from regulations to the credibility of rating agencies.The crisis began with defaults by big name state-owned enterprises (SOEs) such as Yongmei Holdings, Tianqi Lithium, Baoshang Bank, Brilliance …

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Chinese developers face $53bn debt tsunami

Developers face $53bn debt tsunami

(ATF) Real estate companies are facing a surge of bond defaults as a one-third of a trillion yuan of debt as the once-booming industry struggles to recover from the pandemic downturn. With financing costs rising, debt loads climbing and falling sales eroding liquidity, many firms will be unable to pay …

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