China Vows to Limit Bond Issuance by Highly Leveraged Firms (1)

China’s top regulators pledged to curb excess bond sales by heavily indebted companies, in the latest move to rein in runaway corporate debt growth as defaults hit a record amid a slowing economy.

Corporate bond issuance must match the needs of the real economy and conform to national economic and industrial policies, according to guidelines jointly released late Wednesday by six regulators including the central bank and Ministry of Finance. The authorities also reiterated calls for unifying standards for bond sales and information disclosure, as well as a pledge of zero tolerance for debt evasion.

The move is an extension ...