China's Top Arranger Sees More Bonds as Cure for Debt Hangover
- China Securities Co. sees at least 30% increase in 2016 sales
- The country's firms sold 7.9 trillion yuan of bonds in 2015
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China’s top underwriter said regulators will encourage more bond sales this year because cutting off financing isn’t the right solution to the nation’s debt hangover.
As the slowing economy cuts earnings, companies increasingly need fresh note offerings to pay off old obligations, according to China Securities Co., the top arranger of bond offerings from state-owned and listed firms. It forecasts issuance of corporate notes will jump at least 30 percent in 2016 to top 10 trillion yuan ($1.54 trillion), more than the annual economic output of Spain.