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China tightens collateral rules involving corporate bonds amid rising defaults

Published Sun, Apr 9, 2017 · 09:50 PM

DeeperDive is a beta AI feature. Refer to full articles for the facts.

Shanghai

CHINA has published rules barring the use of lower-rated corporate bonds as collateral in short-term borrowing in a bid to reduce financial risks.

The rules, which apply to the so-called repurchase agreement (repo) business in the exchange bond market, come amid rising corporate defaults and Beijing's deleveraging campaign.

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