Rumored lender restrictions refuted

Chinese regulators will not block private or low-rated companies from granting loans, according to two officials who handle corporate debt issuance applications at local regulatory bodies.

The two officials rebutted a rumor that the National Development Reform Commission, China's top economic regulator, will issue a guideline raising the standards for corporate debt issuance, barring all private companies and those rated AA-or lower.

"The government hopes that corporate debt issuance will be an effective financing channel for the nonfinancial sector, and there is no reason to immediately reject lenders that fall into a specific category, either private companies or companies rated AA-or below," said one official, who handles corporate debt issuance documents at the development and reform office of a northeast province.