Goldman: China's Corporate Bonds Are a 'Microcosm' of Its Credit Problems

A willingness to default could indicate a willingness for structural reform.

A Shanghai Chaori Solar Energy Science and Technology Development Co. stand sits at an exhibition in Beijing in 2012.

Source: Imaginechina via AP Images

Want a clue as to whether China will embark on structural reform of its bloated corporate sector, or shed its addiction to credit-fuelled growth?

Analysts at Goldman Sachs Group Inc. suggest watching the onshore Chinese bondsmarket.

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