Fresh regulations on foreign debt issuance soon

China is expected to come out with new regulations on foreign debt issuance, including curbs and blacklisting of companies with inappropriate borrowing demands, according to officials familiar with the matter, who did not want to be named.

"Future guidelines, with details of debt approval procedures and penalties for market participants violating rules, are expected to plug financing loopholes and ward off potential risks," said an official with the National Development and Reform Commission. He said that the current rules seek to just warn violators, rather than taking any action like blacklisting.

The new guidelines are part of the government's broader efforts to extend supervision to all phases of overseas financing and outbound investment, according to the official.