Companies' refinancing cost will........>

CHINA PRESS: Companies' refinancing cost will increase as six credit bonds have

already defaulted so far this year, reported China Securities Journal on Friday.

 - Refinancing cost is expected to increase, as current interest rates have

increased, non-standard financing channels are restricted, and the regulation on

financing is tight. 

 - Though risks emerged in the first two months, a large-scale bond default wave

will not happen: China's economic fundamentals are strong and companies are

seeing growth in their profits. 

 - However, regulators should continue to clamp down on practices of promising

specific yields or return of capital for investors. 

 ***COMMENTS: Financing environment is expected to remain tight this year -

especially for sectors under tighter control, such as the property sector.

Property companies' financing and refinancing are under high pressure.