The Chinese Securities Regulatory Commission (CSRC) said late Friday the nation's bond market risks are generally controllable after a solar products maker defaulted on an interest payment last week.

The incident was an isolated event and not equivalent to a widespread phenomenon that would cause chain reactions, CSRC spokesman Zhang Xiaojun said.

"The default by the company is normal and risks in China's bond market are generally controllable," Zhang said.

Shanghai Chaori Solar Energy Science & Technology Co., Ltd., said last Wednesday it would not be able to service a second interest payment of 89.8 million yuan (14.7 million U.S. dollars) due two days later.

Zhang said that, based on the current situation, the prices of some low-credit bonds have shown signs of fluctuations. However, he said the situation will not worsen.

He added that the stable economy at home and the sound financial system also provide a favorable environment for the development of the bond market, while investment and financing demand in the bond market are expected to stay robust.

Zhang said that the CSRC will make efforts to enhance information disclosure and investor education for the bond market and crack down on illegal practices in bond issuance and transactions. Endi

Go to Forum >>0 Comment(s)