China's bond reforms to encourage scrutiny, foreign buying
The country has adopted new measures over local bond issuance and credit ratings. These may have little impact on defaults but could increase the participation of foreign investors.
In the wake of its largest number of defaults ever in the first two months of this year, experts believe that new regulations could strengthen foreign investor confidence in China's $18.2 trillion onshore bond market and eventually promote better analysis, particularly from international credit rating agencies that are currently afterthoughts in the local market.
However, they warn that the new rules are unlikely to have an immediate impact on the number of defaults.
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