SCMP: China’s bourses suspend bond sales by some property companies ahead of tighter rules from regulator
In a move that signals a wider crackdown on bond sales by Chinese property companies, Shanghai Stock Exchange has suspended bond raising applications from developers that would be disqualified from issuing corporate debt under new guidelines expected to be issued by the securities regulator, industry sources said.
Some smaller real estate companies have failed to receive final approval for bond sales on the Shanghai exchange even after going through the required paperwork, an investment banker with a Shanghai based mid-sized brokerage told the South China Morning Post.
The 21 Century Business Herald reported on Wednesday morning that China’s stock exchanges have suspended final approval for property companies applying for bond sales.
“It seems the regulator will soon introduce new rules regulating property bond sales, and the bourses are proactivelyadopting tighter measure ahead of that,” said the brokerage source.
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After more than a year after the fast heavy volume, the exchange issue size accounted for the largest real estate company debt, seems to usher in a hundred and eighty degree turn.
October 19 morning, a number of brokerage master Cheng Renshi 21st Century Business Herald reporter said that the real estate business exchanges suspended the issuance of corporate bonds, including've got no objection letter items.
Under the new corporate bond issuance management practices, corporate bonds project was a no-objection letter, in theory, after the release of the documents for the record, can be issued. Digital Master Cheng Renshi have said that had never hindered in part of the record, but in the near future Exchange "does not accept either the record or material received no response."
On that day, although informed sources close to the exchange securities for the matter said that the current real estate business departments according to specific financial status indicators, which developed real estate companies may issue corporate bonds, which companies need to issue prudential standards. Standards related differences in standards and relevant departments had little time to perform the audit; Since the standard will be formally issued, some financial indicators of whether the target enterprises currently exists ambiguity may be suspended reviewed, but clearly met the standard of real estate companies to issue bonds issuance unaffected.
However, at least two to accept the 21st Century Business Herald reporter interviewed Cheng Renshi main brokerage said its underwritten project is "normal class" in better qualified, "but the same has been suspended."
...Regardless of whether the Exchange suspended the issuance of all debt real estate companies, the market is more concerned that the supervision of real estate corporate bonds issued after the restart.