China State Banks Cut Corporate Bond Exposure Amid Rout
- Lenders beefing up risk control after string of defaults
- Chinese state-owned firms dollar bonds tumbled this week
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A number of Chinese banks are cutting their holdings of corporate bonds, with some focusing on notes sold by state-owned firms, after a string of defaults roiled the market, according to people familiar with the matter.
At least six banks, including one of China’s four largest lenders, are reducing their overall corporate bond exposure, the people said, asking that they and their institutions not be identified discussing private matters. Of those, five are selling debt issued by state-owned companies, according to the people.