China seeks help for bond issues
1 February 2003
The move signals a change China has asked the World Bank and Asian Development Bank if they would be interested in launching yuan-denominated bonds, the Financial Times said. The International Finance Corporation, private finance arm of the World Bank, said that it was open to the suggestion, while the ADB said it would be very interested in opening serious discussions on the subject.
The move signals a change of attitude by the Chinese authorities, which have feared that a bond market could divert funds from banks and the stock market. However, companies have experienced difficulties in raising funds on the stock market and officials say that some 160 companies have applied to launch bonds. Analysts forecast a surge in bond issues, dominated by state companies raising funds for infrastructure spending.
