Article Image
News Link • China

CICC Says China Bond Market May Open to Foreign Firms in a Year

• Bloomberg.com

Nov. 25 (Bloomberg) -- Foreign companies may be able to sell bonds in China within a year as the government expands its domestic capital markets, according to China International Capital Corp., the No. 2 underwriter of yuan debt this year.

“The first group of future international issuers are likely to be blue-chip companies,” John Cheng, CICC’s investment banking managing director, said in an interview in Singapore yesterday. Overseas “firms will increase their presence in China and they’ll need to match their growing yuan assets with instruments in yuan, be it debt or equity,” he said.

China is urging domestic companies to tap bond and equity markets for funding and reduce reliance on banks after regulators said record loan growth poses risks. Authorities will consider allowing sales of high-yield corporate bonds to provide new sources of funding, People’s Bank of China Deputy Governor Hu Xiaolian said Nov. 18.

 

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Stop Wars T-shirt at The Bitcoin Store