By Reuters Staff
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SHANGHAI, Jan 29 (Reuters) - China’s interbank bond market regulator will restrict moves by bond issuers to transfer assets for free, it said on Friday, in an apparent effort to protect bondholders in the aftermath of a spurt of defaults.
In a statement, the National Association of Financial Market Institutional Investors (NAFMII) told bond issuers’ controlling shareholders not to dodge debt obligations through asset transfer or transactions with related parties.
The curbs come after several top-rated state-owned companies, including Huachen Automotive Group Holdings Co and Yongcheng Coal & Electricity Holding Group Co, defaulted toward the end of 2020, sending shockwaves across China’s bond market.
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SHANGHAI China’s interbank bond market regulator will restrict moves by bond issuers to transfer assets for free, it said on Friday, in an apparent effort to protect bondholders in the aftermath of a spurt of defaults.
In a statement, the National Association of Financial Market Institutional Investors (NAFMII) told bond issuers’ controlling shareholders not to dodge debt obligations through asset transfer or transactions with related parties.
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The curbs come after several top-rated state-owned companies, including Huachen Automotive Group Holdings Co and Yongcheng Coal & Electricity Holding Group Co, defaulted toward the end of 2020, sending shockwaves across China’s bond market.
Regulator Criticizes Three Bond Underwriters in Yongcheng Coal Scandal
A self-regulatory body under China’s central bank announced that three major underwriters of Yongcheng Coal’s bonds had violated self-regulatory rules of the interbank bond market.
China’s interbank bond market regulator has criticized three more financial institutions involved in shady bond issuances by state-owned
Yongcheng Coal, the latest of 11 companies to be named and shamed after the coal miner’s surprise default shattered confidence in debt offerings by state-owned enterprises (SOEs).
On Friday, the National Association of Financial Market Institutional Investors (NAFMII), a self-regulatory body under China’s central bank, announced that three major underwriters of Yongcheng Coal’s bonds
Yongcheng Coal Banned From Debt Sales for a Year
Current and former chairmen of Yongcheng Coal and Electricity Holding Group Co. Ltd. are deemed inappropriate candidates for positions in the debt financing instrument market for a year.
Yongcheng Coal and Electricity Holding Group Co. Ltd. was banned from debt sales for a year by China’s interbank bond market regulator after the state-owned coal mine operator’s bond
default two months ago set off a chain reaction in the bond market.
A “self-disciplinary” investigation into Yongcheng Coal found a number of violations, including inaccurate and incomplete information on the company’s independence disclosed in its bond issuance prospectus. The probe also turned up failure to accurately disclose assets used by the company’s controlling shareholder and related-party transactions with the controlling shareholder, the National Association of Financial Market Institutional Investors (NAFMII) said Thursday in a statement.
Moody s Chinese joint venture suspended over 1b yuan default by Yongcheng Coal & Electricity thestandard.com.hk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestandard.com.hk Daily Mail and Mail on Sunday newspapers.