China Bans Individual Investors From Buying Private Bonds

China banned individual investors from investing in bonds issued by small and medium-sized enterprises through private placement as the world’s second-biggest economy faces rising corporate default risks.

Shanghai Stock Exchange and Shenzhen Stock Exchange also prohibited money from financial products sold to individual investors and not managed by them from being invested in private SME notes, according to bourse statements. In addition, the exchanges banned financial products or limited partnership companies set up solely to buy one private bond.