Abstract
We examine the impact of financial report comment letters on corporate bond pricing. Using 2015-2023 bond trading data for Chinese listed companies, we find that the receipt of comment letters significantly adversely affects bond pricing. The effect is more pronounced in firms with greater information transparency and more pronounced shareholder-creditor conflicts, where bondholders may be more sensitive to disclosure-related signals. Our findings highlight the role of comment letters as an important regulatory tool influencing debt markets in developing economies.