China may ban short-term dollar bond sales to tighten financing options

NDRC to limit builders' bond proceeds to only refinancing

China is slowing approvals for offshore bonds and considering whether to ban short-dated issuance in dollars, according to people familiar with the matter, moves that would reduce financing options for the developers that have led record sales of such debt.

The National Development & Reform Commission is weighing a ban on the sale of dollar bonds with tenors of less than one year, said the people, who asked not to be named because they’re not authorized to speak publicly. The regulator is already restricting offshore bond issuance quotas for Chinese companies, people said.
 

Selling bonds that mature in 364 days has