Goldman Sees Chance to Cut Its China Junk Debt Holdings

Goldman Sachs Group Inc. says now may be a good time to cut holdings of Chinese high-yield bonds after the longest winning streak in six weeks.

“Investors should use the recent rally to reduce overweight positions,” analysts led by Hong Kong-based Kenneth Ho wrote in a note dated April 4. “We believe that there will be more headlines noises to come out of China and expect to see further credit differentiation.”