Investors in China's domestic bond market are seeking greater protection, after this month's unprecedented bond default forced a reassessment of credit risks. SHANGHAI CHAORI SOLAR ENERGY science and technology's missed coupon payment on March 7 has triggered calls for better credit-hedging tools and stronger covenants - global standards that have been long overlooked in China. "There are no covenants for onshore bonds and Chinese investors are unfamiliar with covenants," said Ivan Chung, senior credit officer at Moody's. "There is no legal framework in China to protect bondholders and market participants overlooked covenants until there was a default."
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