Following a regulatory relaxation by the Chinese authorities , unlisted companies can issue bonds on public exchanges , an alternative funding source for high - risk borrowers , after the government clamped down on precarious “ shadow banking . ” Analysts say the narrowing corporate risk premium combined with weakening profits is a red flag for speculative activity. In the third quarter , new corporate bond issuance rose to 914 bn USD , equivalent to 29 % of all new credit . However , these bonds are now packaged into high - yielding products offered to Chinese investors reeling from the summer stock market crash and real - estate downturn and who prefer the big - name backers such as Pacific Asset Management and the Agricultural Bank of China . Some analysts worry that the regulatory changes may lead to a repeat of the recent boom - bust cycle .
Following a regulatory relaxation by the Chinese authorities , unlisted companies can issue bonds on public exchanges , an alternative funding source for high - risk borrowers , after the government clamped down on precarious “ shadow banking . ” In the third quarter , new corporate bond issuance rose to 914 bn USD , equivalent to 29 % of all new credit . However , these bonds are now packaged into high - yielding products offered to Chinese investors reeling from the summer stock market crash and real - estate downturn and who prefer the big - name backers such as Pacific Asset Management and the Agricultural Bank of China . Some analysts worry that the regulatory changes may lead to a repeat of the recent boom - bust cycle .