Commercial Paper Shakes up Chinese Debt Market

There are concerns that too much high-yield paper has been issued and that if several issuers don't pay their debts, the market could go into a freefall

The introduction of commercial paper to China's capital markets two years ago caused quite a stir among corporations looking for new ways to raise funds. Suddenly here was a one-year debt instrument that could be issued without any of the administrative hassles that were keeping corporate bonds in the doldrums.

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