October 26 -- XCMG Construction Machinery (000425.SZ) plans to issue up to 5.6 billion yuan worth of corporate bonds in order to repay bank loans and supplement operating cash flow, reports sina.com, citing a company filing.

The term of the proposed bonds will not exceed 10 years.

According to the interim financial report, XCMG Machinery had negative cash flow of 1.18 billion yuan and a debt ratio of 53 percent.

In addition, the company plans to invest 210 million yuan to set up a subsidiary to manage assets, and conduct equity investment and investment consulting businesses.