300 credit bonds have been cancelled....>

CHINA PRESS: 300 credit bonds have been cancelled so far this year as the high

level of issuance last year has reduced capital available for the sector, 21st

Century Business Herald reported Wednesday. 

- The cancelled value of bond issuance reached CNY183.5 billion, the newspaper

said, partly due to the CNY2.35 trillion credit bond issuance ytd on May 22 last

year; 

- New WMP rules tightening regulation on regulatory arbitrage has forced

companies to transfer their non-standard and illegal financing to the bond

market, thus related credit risks have been transferred to the bond market, the

newspaper said, citing an unidentified fixed-income analyst; 

- As credit bonds expand more bond defaults could happen, the newspaper said,

citing the fixed-income analyst.