China's top economic development planner said it will tighten its regulation of corporate bonds with high liability ratios in a bid to control default risks.

The National Development and Reform Commission said it will refuse to approve corporate bonds if the company has more than 90 percent of debt in relation to its total assets, as the heavy debt burden can increase default risks.

Bond issuers with debt-to-asset ratios of 80 to 90 percent will be required to offer guarantees.

China Daily - Agencies