1, different issuers
The issuer of corporate bonds is a public institution affiliated to the central government department, a wholly state-owned enterprise or a state-controlled enterprise. There are also examples of private enterprises issuing corporate bonds in the market, but the premise is that they have been audited by the National Development and Reform Commission.
The issuer of corporate bonds is a joint stock limited company or a limited liability company. The number of state-owned enterprises in China is far less than that of various companies, so the issuers of corporate bonds are more extensive.
2. Different bond ratings.
Corporate bonds have clear bond rating requirements, and the debt rating should be AA or above. Corporate bonds also need to be rated, but there is no rating requirement.
3. The distribution system is different.
The management department of corporate bonds is the National Development and Reform Commission, and the issuance of bonds is reviewed by the National Development and Reform Commission, and it is required to be completed within one year after approval.
The management part of corporate bonds is the CSRC, and the issuance of bonds is audited by the CSRC. After approval, it can be distributed in multiple times.
4, the use of funds is different.
The use of corporate bonds is mainly limited to investment in fixed assets, technological innovation and repayment of bank loans. Corporate bonds have no special requirements for the use of raised funds.
5. Different credit ratings
The issuer of corporate bonds has the effect of government credit, and its credit rating is equivalent to that of local government bonds. The credit rating of corporate bonds is directly related to the company's operating conditions and profitability, and its risk rating is higher than that of corporate bonds.
The above contents about the difference between corporate bonds and corporate bonds, I hope to help you. Warm reminder, financial management is risky and investment needs to be cautious.