China Firms Spurned by Stock Market Find Silver Lining in Bonds
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Chinese companies blocked from equity financing after a stock rout are finding a silver lining in the bond market.
The average yield on AAA rated onshore corporate notes due in five years has dropped 28 basis points in the past two months to a five-year low of 4.03 percent as equities slid. Yields on similar-maturity securities graded A, considered junk in China, have fallen to a two-year low of 10.14 percent.