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Dow Jones-China Official: Advent of Junk Bond Won’t Affect Bill Mkt
Dow Jones International News
(c) 2006 Dow Jones & Company, Inc.
SHANGHAI (Dow Jones)--The advent of China's first junk bond last month isn't likely to hurt the development of the domestic corporate bill market, a central bank official said Thursday.
Last month, a local ratings company downgraded its credit rating on CNY1 billion of bills issued by toll-road operator Fuxi Group from A-1 to junk grade C due to previously undisclosed loan guarantees for one of its shareholders.
"The Fuxi case won't affect the development of the short-term bill market," Mu Huaipeng, director of the People's Bank of China's finance market department, said on the sidelines of the Asia-Pacific Finance and Development Center Biennial Forum in Shanghai.
