UBS Says Market Wants Default as Risks to Pile Up: China Credit

UBS AG’s China securities unit, the leading foreign underwriter of debt sales in the country, says the market wants to see the first onshore bond default to reduce long-term hazards to the financial system.

“Systematic risk will pile up without any default happening,” Bi Xuewen, head of China debt capital markets at UBS Securities Co., said in an interview in Shanghai. “Market participants would like to see a default in China’s bonds. Only after defaults can the overall risk pricing system be normalized.”