Corporate Bond Issuance for Jan – Sept Drops by over Half

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Corporate bond issuance in China has seen a year-on-year decline of more than 50% for the period from January to late September.

Data from Wind indicates that as of 20 September the National Development and Reform Commission (NDRC) approved the issue of a total of 130.96 billion yuan in corporate bonds, for a drop of 140.025 billion yuan compared to the same period last year.

Corporate debt issuance hit a peak in the third quarter of 2017, with 192 issues during the three months raising a total sum of 196.25 billion yuan.

The period from July to 20 September 2018 has seen only 48 bond issues however, raising a total of 40.64 billion yuan.

Market observers say that NDRC is about to accelerate bond corporate issuance, following a decline in debt risk pressure as well as efforts by Beijing to shore up growth amidst escalating trade tensions with the US.

 

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