Regulator takes steps on bond defaults

China's central regulators have released two guidelines in the past three months to tackle corporate bond defaults that took place from last year to the beginning of this year.

The National Development and Reform Commission issued an announcement on its official website on Tuesday to urge local authorities to check companies' ability to repay their bonds. Comprehensive investigations should be conducted to avoid risks.

The announcement came one day after the suspension from trading of a corporate bond issued by China Minsheng Investment Group, which is a private equity group backed by many of China's leading privately-owned enterprises. The group had already made a technical default on Jan 29 by missing the deadline to repay principal on a 3-billion-yuan ($44 million) private placement bond.