China Companies Suspected of Buying Own Bonds to Spur Demand

  • Issuers buy subordinated tranche of asset-management products
  • Practice is seen increasing risk, masking true investor demand
Bloomberg’s Lianting Tu reports on a creative method some Chinese companies are using to secure financing.(Source: Bloomberg)
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Chinese companies challenged by policy makers’ determination to tamp down leverage in the country’s financial system have found some creative ways to secure funding.