Business / Markets

NDRC says no default risk on bonds it approved

By Zheng Yangpeng ( Updated: 2014-03-21 15:35

China's top economic planner, the National Development and Reform Commission, said so far there is no payment risk of

NDRC says no default risk on bonds it approved

corporate bonds issued under its approval.

Under China's regulatory structure of the corporate bonds market, the NDRC is responsible for non-listed and non-financial firms, mostly State-owned Enterprises. China Securities Regulatory Commission is responsible for approving listed firms to issue corporate bonds.

The NDRC statement came amid increasing concern over China's bond repayments after the country's first domestic bond default and subsequent media reports of trouble at other companies.

Shanghai-based Chaori Solar Energy Science and Technology Co Ltd reported China's first corporate bond default in early March. The company paid only 4 million yuan ($642,330) of an 89.8 million yuan coupon payment that was due March 7.

China Credit Trust Co was bailed out in January on a 3 billion yuan trust product tied to a failed coal miner.

Corporate bonds worth a total of 100 billion yuan under the NDRC management will mature this year and one-fifth have been redeemed, the China Securities Journal quoted the planner as saying at a meeting on Thursday.

The NDRC said a survey by its provincial offices found no risk in repaying the remainder.

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