China Moves to Quell Systemic Bond Risks After Default Wave
- Local officials in Hubei, Zhejiang corral corporate creditors
- Any potentially destabilizing move to spur intervention: AXA
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China’s policy makers and local authorities are taking steps to prevent deepening strains in the $11 trillion bond market from spiraling into a broader systemic collapse.
After a series of defaults and a net contraction in bond financing last month, officials have moved to inject liquidity and pressure creditors to negotiate with embattled individual borrowers this month. Among the examples so far: