FIRMS in China have canceled or delayed at least 99.5 billion yuan (US$15.32 billion) in planned bond issuance so far this month, as investor concerns over debt defaults mount.

    More than 100 firms have delayed or canceled issues, according to data compiled from China’s two main clearinghouses for the interbank market and the interbank market operator. The State and private firms are from a broad range of sectors including cement, automobile and local government financing platforms, among others.

    As of last Monday, data showed that only around 70 billion yuan in bonds had been canceled in April so far, implying a substantial increase over the past week as bond yields have kept moving higher.

    After China Shanshui Cement’s default in November, which helped push low-rated bond yields higher, firms canceled or postponed more than 40 billion yuan in bond issuance.

    Chinese bond yields, however, have risen sharply this month, as rising worries about corporate creditworthiness and a less aggressive easing stance by the central bank drained liquidity from the fixed income market. (SD-Agencies)