China Faces More Bond Market Risks After Chaori, CICC Says

China will face more risks in its bond market following the country’s first default on onshore debt, according to China International Capital Corp.

“Looking at the second quarter, we think the worst of credit risk is far from over,” bond analysts Ji Jiangfan, Zhang Li, Xu Yan and Wang Zhifei at CICC wrote in a March 14 report. “Lower-rated bonds’ credit premiums may stay at high levels or rise to new highs.”