, Columnist
The China Debt Haven You Didn't Expect
New-home prices are still rising in many cities and that also benefits bonds from local government authorities.
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Much has been said about China's purported property bubble and ghost cities, but when it comes to junk bonds, listening to that would have meant risking going backward a lot faster.
Over the past month, dollar debt that's been sold this year from Chinese developers and local government financing vehicles -- whose fate is deeply intertwined with real estate -- has outperformed other sectors. That's in spite of prolific issuance.