By Addison Gong
01 Feb 2021
In this round-up, China’s official and the Caixin manufacturing Purchasing Managers’ Indexes fall amid a resurgence of local Covid-19 infections, creditors demand a bankruptcy reorganisation of beleaguered conglomerate HNA Group, and Xiaomi Corp files a lawsuit against the US’s decision to add it to a list of Chinese companies with alleged military ties.
China’s official January manufacturing Purchasing Managers’ Index (PMI) came at 51.3, down from December’s 51.9, with non-manufacturing PMI dropping to 52.4 from 55.7 the previous month, latest data from the National Bureau of Statistics showed.
The official manufacturing PMI reading reached a three-year peak of 52.1 in November 2020.
China Regulator Shakes Up Credit Ratings Rules in Wake of Confidence Blows to Investors
Chinese companies will no longer be asked by the regulator to attest to how risky the companies and some of their interbank bonds are when registering the bonds with the regulator.
China’s interbank bond market regulator is pushing for a more market-oriented approach to debt ratings following a series of high-profile defaults by highly rated state-owned companies (SOEs) that exposed how domestic credits ratings agencies soft-peddled the potential risks to investors.
Under the changes, Chinese companies will no longer be asked by the regulator to attest to how risky the companies and some of their interbank bonds are when registering the bonds with the regulator.
By Reuters Staff
(Adds more details, background; tweaks headline)
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.