Central Bank: Accelerate the improvement of a unified bond default settlement mechanism
Beijing News Shell Finance News On July 1, the central bank’s website showed that in order to accelerate the improvement of the basic rules of the bond market with unified rules and build a market-based and rule-of-law bond default settlement mechanism, recently, the People’s Bank of China, together with the Development and Reform Commission and the Securities Regulatory Commission The Association jointly issued the Notice of the People’s Bank of China Development and Reform Commission Securities Regulatory Commission on Matters Related to the Disposal of Corporate Credit Bonds (hereinafter referred to as the “Notice”).
The Notice revolves around the construction of a unified bond default system framework, the basic principles that should be followed for the treatment of bond defaults, the functional role of the fiduciary manager system and bond holder meetings, and the responsibilities of issuers, bond holders and various intermediaries Standardize obligations and rights, and at the same time aim to resolve issues such as the issuer’s malicious debt evasion, weak bond issuance documents, and inadequate market-based default settlement mechanism, and promote the market-oriented default treatment of the bond market.
The “Notice” makes it clear that the bond default settlement should simultaneously adhere to the bottom line thinking and the principles of marketization and rule of law, the principle of due diligence and the principle of equality and voluntariness of all parties, and give full play to the core role of the trustee and bond holders in the bond default settlement. Strengthen the issuer’s contractual spirit, increase investor protection, diversify and diversify the bond default settlement mechanism, strictly perform the duties of intermediaries, and increase the uniform enforcement of the bond market.
The central bank said that in the next step, it will continue to work with the Development and Reform Commission and the China Securities Regulatory Commission to accelerate the improvement of the market-based and legalized bond default settlement mechanism within the framework of the inter-ministerial coordination mechanism for corporate credit bonds to promote the long-term healthy development of the bond market.
Beijing News Shell Finance Editor Zhao Ze