China regulator reprimands banks over Yongcheng bond default

Zhongyuan Bank

15/01/2021 09:35

SHANGHAI, Jan 15 (Reuters) - China's interbank bond market
regulator said on Friday that it had instructed three banks to
conduct "thorough rectification" after they violated regulations
as chief underwriters for Yongcheng Coal & Electricity Holding
Group Co Ltd.
    Yongcheng defaulted on a 1 billion yuan bond on Nov. 10,
just weeks after it sold fresh debt, sparking a selloff in
China's corporate debt market.
    In a series of statements, the National Association of
Financial Market Institutional Investors (NAFMII) said it had
also referred the violations by Industrial Bank  601166.SS ,
Zhongyuan Bank <1216.HK), China Everbright Bank  601818.SS  to
the central bank and the banking and insurance regulator. 

 (Reporting by Andrew Galbraith and the Beijing Newsroom;
Editing by Catherine Evans)
 ((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))