China's Bond Market Is a Real Minefield for Investors
- Publicly listed companies are now defaulting, in new twist
- Best to stick with government and AAA debt, fund manager says
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The days when only obscure Chinese companies defaulted on their debt are ending.
Four of the five issuers that have defaulted for the first time in 2018 are companies with public listings, which used to be regarded as assuring better governance and information disclosure. That’s as many by this type of firm as happened in 2014 through 2017, data compiled by Bloomberg show. For investors, the change means it’s dangerous to make assumptions.