Investors Are Learning to Live With China’s Credit Defaults
- 2021 could be ‘inflection point’ for credit risk pricing: BNP
- Riskier SOEs’ bond yields hit record high after default wave
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China’s authorities are increasingly spreading the message: you should get what you pay for when it comes to corporate bonds.
Beijing is allowing a wave of defaults by state-linked companies in the country’s $15 trillion credit market. Last week, prominent chipmaker Tsinghua Unigroup Co. defaulted on $450 million of dollar debt triggering cross-defaults on another $2 billion -- equivalent to almost two-thirds of the total defaulted debt in China’s offshore bond market in 2019.