Corporate bond approvals in China decentralized

Centralization causing delays and inefficiency.

The National Development and Reform Commission, China's top economic planner, will delegate the right to approve most corporate bond issues to its provincial offices. It is a move to streamline and upgrade China’s debt market.

Formerly, all applications had to be approved by the central NDRC office, causing wide complaints about delays and inefficiency.

Local NDRC offices must now decide on applications to issue bonds within 15 days. Exceptions will be made for requests from firms in industries under government restrictions.

Regulation of the bond market is complex and administrated by bureaucracies with overlapping mandates. NDRC is responsible for applications from non-listed and non-financial firms to issue "corporate bonds" while the China Securities Regulatory Commission retains the authority to approve "company bonds" issued by listed companies.

The People's Bank of China manages the "financing bills" market, with common tenors ranging between less than one year to seven years.