China encourages high-quality firms to sell bonds to raise funds

BEIJING: China's state planner said on Wednesday it will support bond issuance by high-quality firms to raise the proportion of direct financing for companies.

The National Development and Reform Commission (NDRC) said it will encourage qualified listed firms and their units to issue corporate bonds to raise funds, according to a notice posted on its website.

However, companies which raise money from bond sales will be banned from lending funds for investment in the real estate market and sectors with excessive capacity, the NDRC added.