Recent rising bond defaults and.........>

CHINA PRESS: Recent rising bond defaults and increasing difficulties in bond

issuances are a reflection of the ongoing deleveraging campaign, but they also

indicate that bond investors' expectations have worsened, reported Securities

Times on Tuesday. The financial deleveraging campaign has tightened funding

channels, mainly affecting private corporates who had previously raised too much

debt and expanded aggressively, the report said. Regulators need to closely

follow the liquidity condition and market expectations to let some companies

default properly, and to prevent regional risks from expanding to systemic

financial risks, the report said.