China Delivers Another Harsh Verbal Warning to Bond Buyers
- One-sided moves can lead to significant financial risks: Paper
- Systemic risks may happen if market reverses: Financial News
The People's Bank of China in Beijing.
Source: Bloomberg
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China delivered one of its most direct warnings yet to bond investors, returning to harsh rhetoric to curb a fall in yields after a salvo of measures to squeeze speculators failed to ignite a sustained turnaround.
Authorities will crack down on any illegal actions that disrupt the bond market and threaten systemic risk, according to a commentary Wednesday in a newspaper backed by the People’s Bank of China. The article came as traders rushed back into bonds after poor bank loan data fueled pessimism on the economy and yields pared their drop after it was published.