China Top Bond House Sees Private Firms' Funding Woes Easing
- Defaults to reduce in 2019 on supportive policies, BOC says
- BOC plans to work with credit support providers to sell bonds
This article is for subscribers only.
While many market players expect funding conditions for China’s private sector firms to remain tight despite recent easing measures by policy makers, the nation’s top corporate bond underwriter predicts otherwise.
China is shifting from derisking the financial system to also supporting the real economy, said Liu Donghai, general manager of investment banking and asset management department of Bank of China Ltd. The number of debt defaults are likely to fall next year as authorities "actively" deploy support tools to assist funding by private companies, he said in an interview in Beijing.