Stung by record defaults, China vows for more transparent bond handling

Improving the mechanism of handling bond defaults will be essential to prevent and resolve financial risks, and it must be done in a way that is market based

China’s financial regulators are calling for more transparent and fair handling of defaults to restore investor confidence in the world’s second-largest bond market, after repayment failures hit a record high this year.

Senior officials from the central bank, the securities regulatory body, the supreme court and other departments discussed court-mediated dispute resolution concerning bond defaults at a symposium in Beijing on Tuesday, according to a statement posted on the website of People’s Bank of China.

Improving the mechanism of handling bond defaults will be essential to prevent and resolve financial risks, and it must be done in a way that