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China group to curb private bond sales by developers, steelmakers
February 24, 2017 / 9:21 AM / 10 months ago

China group to curb private bond sales by developers, steelmakers

BEIJING (Reuters) - China’s securities industry association plans to revise rules on private bond sales to restrict issuance of them by property developers, steelmakers and coal producers, two sources with direct knowledge of the plan told Reuters on Friday.

Under the revised rules, getting drafted by the Securities Association of China, property developers who speculate on land prices, hoard land or properties, or drive up home prices will be banned from issuing bonds via private placement, the sources said.

In addition, steelmakers and coal producers who defy Beijing’s reform measures to cut excessive capacity will also be barred from selling bonds, according to sources, who declined to be identified.

China has been pushing what it calls “supply-side” reforms, urging companies in sectors such as steel, coal and real estate to slash overcapacity and improve quality.

Reporting by Beijing Newsroom; Editing by Richard Borsuk

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