Developers to gain from China’s boost for corporate debt

Large Chinese real estate firms stand to benefit from recent government policies to encourage the sale of more corporate bonds.
Large property developers to gain from bond policies
Large property developers to gain from bond policies

Large Chinese real estate firms stand to benefit from recent government policies to encourage the sale of more corporate debt. But smaller companies may not benefit much from these policies.

On December 14, the China Securities Regulatory Commission CSRC announced that it had worked closely with the People’s Bank of China to provide tools to support bond financing for private companies in the mainland Chinese capital markets. The first private firms to adopt these financing tools are Shanghai-listed Hengtong Optic-Electric and Shenzhen-listed Guangzhou Zhiguang Electric. The tools deployed by both companies are credit protection contracts.

“The CSRC encourages financial institutions to supply credit protection tools...

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