Bond probe launched
China will launch an investigation into corporate bond risks, focusing on issuers' ability to repay maturing notes.
The National Development and Reform Commission, China's state planning agency, announced on Wednesday that it would investigate issued corporate bonds on their duration and check the risks in principal and interest payment.
It aims to better prevent and address risks in the field of corporate bonds, and to enhance the ability of corporate bonds to serve the real economy, the NDRC said in a statement.
The commission requires its provincial offices to conduct specific checks on all corporate bonds in operation, mainly focusing on the overall situation, the fields they invest in, and their operating benefits.
Local authorities will also work on clearing risks in corporate bonds, and actively make risk response plans and deal with bond defaults to safeguard the legitimate rights and interests of bondholders.