Core Viewpoint - The article highlights the increasing regulatory scrutiny on the bond issuance market in China, particularly focusing on the misconduct of private equity firms involved in non-market-based bond issuance practices [1][6]. Group 1: Regulatory Actions - The China Interbank Market Dealers Association has recently imposed self-discipline penalties on five institutions, including warnings and corrective orders against the rating agency China Chengxin Securities Rating Co. and severe warnings to private equity firms such as Shanghai Fuxi Asset Management [1][3]. - Other firms like Mengsen (Shanghai) Investment and Shenzhen Qianhai Jiuying have also faced similar penalties for comparable violations in the bond issuance market [1][7]. Group 2: Types of Violations - The penalized private equity firms primarily engaged in two types of violations: assisting multiple issuers in non-market-based bond issuance while charging substantial service fees, and facilitating "self-financing" issuance through nested asset management plans [3][4]. - Shanghai Fuxi Asset Management was specifically noted for using its own funds or introducing external funds to participate in bond issuance, which constituted a conflict of interest with its private fund management duties [4][5]. Group 3: Market Impact and Compliance Issues - The article emphasizes that the actions of private equity firms in the bond issuance market can significantly distort the true market conditions, leading to misjudgments by investors regarding creditworthiness and bond values, thereby increasing investment risks [9][10]. - The ongoing trend of strict regulation is expected to continue, as the private equity firms often exhibit weak compliance awareness and are lured by high service fees, leading them to take risks [8][10].