China orders checks of enterprise bonds to assess default risks: sources

[SHANGHAI] China's top planning agency has ordered issuers of so-called enterprise bonds and their underwriters to assess the risks of default and report back to the government in a nationwide campaign to limit systemic financial risk.

The National Development and Reform Commission (NDRC) ordered issuers to take stock of their ability to repay principal and interest and submit reports by April 15 every year, starting this month, according to three sources with direct knowledge of the notice and a copy seen by Reuters.

The NDRC did not have an immediate comment on Wednesday evening when contacted by telephone and fax.

Companies at risk of defaulting on their bonds must report the situation to the NDRC in a timely manner, the notice said. It urged bond underwriters to make inspections of issuers and submit reports to the agency.

REUTERS