AT least 46 firms in China shelved debt issuance plans totaling more than 50 billion yuan (US$7.20 billion) this month as a rout in the country’s bond market deepened, calculations showed.

    Having already doubled the 20.8 billion yuan called off in November, cancellations appeared to accelerate in recent days as the U.S. Federal Reserve’s rate hike and hawkish policy stance triggered a fresh bout of selling in China’s bond market.

    On Thursday alone, 10 companies, including Chenming Group and China National Salt Industry Corp., announced debt issuance cancellations.

    During the first half of this month, 46 companies, including paper maker Chenming Group, green energy firm Xinte Energy, and semiconductor producer San An Group canceled their debt issuance plans, according to statements posted on the website of China’s interbank market.

    Saying they would wait for a more favorable time to issue debt, the companies cited unfavorable market conditions and higher borrowing costs, as bond yields spiked over the past month to reflect expectations of higher inflation.

    Affected issuers include both private run and State owned firms. (SD-Agencies)