Buoyant bond yields land firms in financing muddle

Corporate bond yields in China have been rising for the last few months - and companies are feeling the pinch.

For instance, the yield on five-year, AAA-rated corporate bonds reached 6.14 percent in May, in contrast to 3.12 percent in December, and the current five-year bank lending rate of 4.75 percent, according to Hithink Royal Flush Information Network, a financial information provider.

The uptrend began in December when Chinese policymakers drove money market rates higher to rein in companies' rising leverage and prevent systemic risks.