China should be cautious in implementing changes to the bond market during the Covid-19 outbreak, CITIC has said.
Among the recommendations contained in the financial group’s 2020 ratings outlook, CITIC said the focus of urban investment bonds should be on counter-cyclical adjustments, expiration of exercisable bonds and issuance of local bonds.
Changes in real estate policies are needed to enable the issuance of property-based bonds, the report said, stressing the need for firms to focus on liquidity risks and to adjust the scale of some projects.
