China Banks Amped Up $10 Trillion Bond Bet as Market Peaked

Just as China’s long bull run for bonds is fading, the nation’s banks have loaded up on government debt at the fastest pace since 2019.

In each of the past two months, commercial banks such as China Construction Bank Corp. raised their overall central and local government debt holdings by more than 20% year-over-year, reaching 72 trillion yuan ($10 trillion) by August, according to central bank data.