SHANGHAI, April 8 (Reuters) – A growing number of Chinese companies have canceled bond sales in recent weeks due to market volatility, even as authorities pledged to step up efforts to facilitate debt issuance to help the economy. virus-hit economy.
Issuance of 48 bonds was delayed or canceled in March, more than the failures in the previous two months combined, according to financial data provider iFinD.
Dozens of companies, including Lianyungang’s New Headline Group and Suzhou’s SND Financial Holdings, canceled the issuance of medium-term notes, citing recent market volatility.
Bluesea Investment of Weihai in China’s eastern province of Shandong said it had canceled the issuance of a 200 million yuan ($31.43 million) bond to cooperate with the local COVID containment policy. -19 amid rising cases, according to a March 21 statement.
China’s worst wave of COVID-19 since the outbreak in Wuhan, the escalating crisis in Ukraine and a sharp decline in the domestic real estate sector are rocking the country’s financial markets.
The Shanghai Stock Exchange on Wednesday held a meeting with about 100 brokers to improve support mechanisms for corporate debt financing, the official China Securities Journal reported. China’s securities regulator also said late last month that it planned to introduce measures to expand debt financing channels for private companies.
($1 = 6.3636 Chinese yuan renminbi)
(Reporting by Jason Xue and Andrew Galbraith; Editing by Kim Coghill)
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