The Challenges Facing China’s Bond Market

The unprecedented boom in China’s $3 trillion corporate bondmarket is starting to unravel. Spooked by a fresh wave of defaults at state-owned enterprises, investors in China’s yuan-denominated company notes have driven up yields for nine of the past 10 days and triggered the biggest selloff in onshore junk debt since 2014. Local issuers have canceled 60.6 billion yuan ($9.4 billion) of bond sales in April alone, and Standard & Poor’s is cutting its assessment of Chinese firms at a pace unseen since 2003. Standard Chartered Chief Economist for Europe Sarah Hewin and Bloomberg’s Lianting Tu discuss with Anna Edwards and Manus Cranny on “Countdown.”

How Investors Can Fight the Urge to Go to Cash
22:29 - In today's "Single Best Chart," Bloomberg's Tom Keene displays the performance of the S&P 500 going back to 1927. He speaks with Brian Levitt, senior investment strategist at OppenheimerFunds, on "Bloomberg Surveillance." (Source: Bloomberg)
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