The deterioration in corporate bond.....>

CHINA PRESS: The deterioration in corporate bond issuance in China has sharply

increased this year in a market made sluggish by strict regulation and tight

liquidity conditions, the Shanghai Securities News reported Wednesday. As of the

end of November, 734 corporate bond issues had failed or were canceled,

affecting CNY586.63 billion worth of bonds, compared with CNY577.53 billion for

all of last year. In November alone, CNY85.23 billion worth of bonds were

canceled or postponed, 2.6 times more than in the same period last year. Issuers

and buyers of corporate bonds are both reluctant to do business, with a capital

shortage causing an increase in bond rates. The situation is expected to

continue next year as liquidity conditions tighten further. (Shanghai Securities

News)