Bonds to Fight New Virus Help Chinese Firms Repay Old Debt
- Regulators pledged speedy approval for “anti-epidemic bonds”
- Bulk of such notes for refinancing, less for virus fight
A woman cycles through the deserted streets of Wuhan, Hubei province, China.
Photographer: Getty Images
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Chinese companies are flocking to issue new bonds in the name of fighting the coronavirus, taking advantage of a policy easing by Beijing to mobilize financial resources to contain the nation’s worst public health crisis in 17 years.
But a closer look at the latest boom of the so-called “anti-epidemic bonds” shows that the borrowers will use the bulk of the proceeds for rolling over old debt, instead of directly funding efforts to get the epidemic under control.