Bad for Chinese banks, good for China

Financial system in China takes a big step forward
What's the mandarin word for disintermediation?

This has been in the works for some time but is just now going into effect. Chinese companies can now issue corporate debt, hence will have cheaper and more flexible source of capital. (Regulations had permitted this in the past but the government entity in charge was hyper-risk averse and essentially didn't allow any issuance. The CSRC is now in charge and will allow broad issuance.) Banks will no longer have captive high spread business. For China Inc it means higher profits and increased efficiency of capital allocation.

Incidentally, China may be the only country on earth where debt is being issued today...