China news: corporate bond market booms / Govt cautiously allows bond trading while tightening scrutiny / Beijing Jingneng Clean Energy issuing $567m of bonds

> The Financial Times recently reported that China's economy is slowing, profits are falling and its stock market is drifting down, but its corporate bond market is moving in the exact opposite direction: it is booming. Bond issuance was up about 60 per cent by volume in the first half of 2012, compared to last year. The major reason for this has been regulatory reform, with officials clearing away some of the obstacles that have stood in the way of the development of the bond market. Read more.

> Bloomberg reports that China is allowing more companies to trade bonds and increasing scrutiny over issuers as the government seeks to ensure that the expansion of its nascent debt market isn’t derailed by defaults. China’s $659bn corporate bond market is only about 9% of its GDP; in the US bonds equal more than half the size of economic output. But the National Development & Reform Commission is not taking any chances - it has ordered local officials to set up risk monitoring and forecasting mechanisms for debt maturing this year and next. Companies that violate the monitoring rules and default will be barred from selling more bonds. Read more.

> Chinese company Beijing Jingneng Clean Energy is issuing 3.6 billion yuan ($567 million) of bonds to repay bank loans and raise working capital, according to Bloomberg. The company will sell 2bn yuan of 3-year notes and 1.6bn yuan of 5-year bonds.  The company, a unit of state-owned Beijing Energy Investment Holding Co, is rated AAA by China Lianhe Credit Rating Co.