Bonds will improve disclosure standards.

The article discusses the developments regarding the initiation of corporate bonds as a viable form of debt financing in Chinese markets and the effect on the market. The news of a potential regulatory switch from the country's conservative National Development and Reform Commission (NDRC) to more liberal China Securities Regulatory Commission (CSRC) encouraged potential issuers in China. After receiving approval from the CSRC, China Yangtze Power Co. became the first listed company in the country to issue corporate bonds. The article stresses that the market will have to do without bank guarantees. In the future, CSRC may consider allowing multinationals to issue bonds, but China's reluctance to guarantee corporate bonds will put more weight on disclosures.