China Extends and Tightens Bonds Market
China is allowing more companies to trade bonds and is increasing its scrutiny over issuers as the government seeks to ensure that the expansion of its nascent debt market is not derailed by defaults, Bloomberg reported, citing two people with direct knowledge of the matter. Local governments have been ordered to examine the ability of companies to repay bonds maturing in 2012 and 2013. Chinese companies sold more debt in the first five months of 2012 than in all of 2010 as the government encouraged companies to boost fundraising through sales of equity and bonds in a campaign to wean them off loans from state-owned banks.
Electronics Manufacturing Profits Slump 28% Jan-Apr
China's electronics manufacturing industry posted ¥2.48 trillion in revenues and ¥60.37 billion in net profits between January and April, up 10.4% and down 28% respectively from the same period a year ago, according to data from the Ministry of Industry and Information Technology. No reasons were given for the decline in earnings.
$1 = ¥6.35