Bank of China Supervisor Says Country Should Allow More Defaults

China should allow companies to default on their bonds, an external supervisor at the Bank of China said today, after a solar-cell maker couldn’t repay full interest on its debt.

“We need to be more accepting and allow such defaults to happen,” Mei Xingbao told reporters during a meeting of the Chinese People’s Consultative Conference in Beijing. “The debtor must be responsible for his own debt. He must tell the investors that there is risk involved in the product.”