BEIJING, Dec. 29 (Xinhua) -- China's central bank, top economic planner and securities watchdog jointly issued administrative rules on information disclosure of corporate debenture bonds to unify related requirements on exchange and interbank bond markets, reported Xinhua Finance Monday.
The new rules, effective as of May 1, 2021, represented an important systemic arrangement of China in unifying its corporate debenture bond information disclosure standards, good to improve the quality and transparency of bond market information disclosure and protect legal rights and interests of investors.
For a long time, China's interbank and exchange bond markets were separated and regulated with different rules until July 19, 2020 when China's central bank and securities watchdog released a circular permitting interconnectivity of related infrastructure of the two markets.
Under such circumstances, Chinese central bank, the National Development and Reform Commission and China Securities Regulatory Commission jointly rolled out a series of measures to unify market rules of the exchange and interbank bond markets in recent years.
The new rules debuted on Monday require enterprises, intermediaries and related personnel to strictly fulfill obligations regarding information disclosure and prohibit false recording or filing, misleading statement and omissions of significant or material statements.
Media reports citing Zhang Gang, senior partner focusing on banking and finance at Dentons, said that prior to the new rules, detailed standards and procedures for information disclosure on China's interbank and exchange bond markets differed and issuers needed to prepare different contents for disclosure if issuing bonds on both of the two markets.
The debut of the new unified rules will help lower the information disclosure costs for issuers and for investors, they can enjoy more conveniences in investment decision making and benefit from the unified investor protection standards.
Recent years, China's corporate debenture bond market expanded in a rapid pace and ranked by market size the second worldwide, with market participants and products continuously diversified and related rules regime improved significantly. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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