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China will tighten regulations to fend off risks in corporate bonds

BEIJING, Aug 15 (Reuters) - China will tighten regulations to fend off corporate debt risks, the country's state planner said on Tuesday, adding that it will seek to achieve total separation between bond-issuing companies and local government credit.

The National Development and Reform Commission also said it would fend off corporate debt default risks and allow firms to apply for special bonds for debt-for-equity swaps.

It will increase financial support for state firms who are cutting down their borrowings, the NDRC added. (Reporting by Beijing Monitoring Desk; Editing by Jacqueline Wong)