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Big Chinese Companies: Bonds without the Banks [Copy link] 中文

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Post time 2007-9-4 13:43:08 |Display all floors
Big Chinese companies are taking advantage of newly relaxed regulations to raise funds through bond sales, without big banks, a trend that threatens to eventually erode local banks' longstanding monopoly on corporate finance.


Gemdale Corp., is planning a 1.2 billion Yuan issue, and earlier in August, China Yangtze Power Co., a Shanghai-listed company affiliated with the Three Gorges dam project, announced plans for an eight-billion-Yuan debt sale. Tellingly, Yangtze Power will use the proceeds to, among other things, pay off some of its bank loans. "The large corporations with higher credit ratings will move to direct financing from the capital markets," says May Yan, a bank analyst with Moody's Investors Service in Hong Kong. "There's a big incentive to do so," she says, pointing out that interest rates on existing corporate bonds, often about 3% to 3.5%, are well below current benchmark bank lending rates of about 7%. While bank loans still are the dominant form of finance in China, stock and bond sales accounted for 12% of fund raising by nonfinancial companies in 2006, up from 5.4% in 2003, according to figures from the People's Bank of China. That proportion is likely to increase in coming years, as China's stock markets become more active and the leadership pushes through promised overhauls to the bond market.
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Post time 2007-9-4 14:41:51 |Display all floors
It seems that you forget give us the full story?^_^

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Post time 2007-9-5 14:15:20 |Display all floors
yeah, would you give us the full story?
If you believe there is a miracle, there will be!

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Post time 2007-9-5 14:27:11 |Display all floors
oh, i am sorry. you can resd the full story at  http://news.tootoo.com/index.html:)

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