China hints at high-yield bond crackdown

Hong Kong

THE Shenzhen branch of China's top economic planning agency has raised fears of a crackdown on offshore financings from lower-rated companies.

The local unit of the National Development Reform Commission (NDRC) issued a notice in March requiring Shenzhen-registered companies to provide investment-grade ratings from global rating agencies (Moody's, S&P and Fitch) as supporting documents for registrations to issue bonds offshore.