SHANGHAI (Reuters) - China’s central bank on Friday published draft rules on regulating corporate bond default disposal, in an attempt to strengthen risk management.
The central bank said it will diversify market-based default disposal methods and strengthen punishment for malicious acts for missed repayments on corporate bonds, according to a statement published on its website.
The principle of the draft rules was to fend off systemic financial risks and maintain bond market financing. The rules will also help promote the development of a credit derivative market.
They were jointly issued by the central bank, securities watchdog and the state planner.
Reporting by Beijing Monitoring Desk and Winni Zhou; editing by John Stonestreet