Credit debt issuance slumps in H1 as government tightens regulation

Issuance of China's credit debt declined sharply in the first half due to stricter regulation and rising financing costs, but the market is expected to improve in the second half, according to a leading Chinese credit rating agency.

In China's inter-bank bond market, 1,640 credit debts were issued worth 1.8 trillion yuan ($268 billion) in the first half of this year, decreasing 41 percent year-on-year, according to United Credit Ratings Co Ltd.

There are mainly three types of debt in China's debt market, government bonds, credit debt and convertible bonds. Credit debt includes corporate debt, short-term financing bills, mid-term notes and subordinated debt.