MNI BRIEF: China To Strengthen Rules For Corporate Bonds: NDRC

China will strengthen rules for corporate bonds issued by state-owned enterprises and set up an early warning system to track interest payments and help formulate risk-resolution plans, said Meng Wei, spokeswoman of the National Development and Reform Commission at a briefing on Tuesday.

Local authorities should identify default risks by screening and inspecting projects for which the bonds are issued, she said. Departments that manage corporate bonds should increase coordination and unify and strengthen disclosure rules, Meng added.

Central-government-controlled SOEs have not defaulted on any bond so far this year, and the cumulative default rate for the group is the lowest among corporate bonds, Meng said.