Beijing regulators exercise credit control

China

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With a booming economy, massive demand for assets from domestic investors and a history of financial sophistication, China should represent one of the world's largest credit markets. However, in practice, a cautious regulatory regime and the tricky political issue of massive foreign exchange reserves and an undervalued currency have kept the amount of corporate bonds - as opposed to bank financing and government issuance - at a minimum.

Chinese bankers hope the advent of the country's first a