The Great Ball of China Money Rolls Into Bonds
Bringing leverage and distortion in its wake.
A construction worker leaves the site of China Vanke's "Fun City" apartment complex in the Fangshan district on the outskirts of Beijing.
Photographer: Keith Bedford/BloombergThis article is for subscribers only.
China's markets resemble nothing if not a great rolling ball of money that moves from asset class to asset class, constantly searching for the next source of sizable returns.
After shifting away from stocks this summer, when the value of the Shanghai Composite Index almost halved in a dramatic market selloff, the Great Ball of China seems to have found a new home: bonds sold by Chinese corporates.