These defaults are coming even as many asset managers, bullish on Chinese debt, have been pushing calls on investments into Chinese bonds this year. China’s onshore bond market is worth US$13 trillion, the world’s second largest. Here’s what analysts think are some factors playing into the recent spate of defaults involving Chinese state-owned enterprises. But that’s actually a positive, she said, suggesting it allowed for some “differentiation” in the Chinese market between stronger and weaker firms. “We’ve been saying for some time now that increasing credit differentiation actually is a positive for the long-term development of the Chinese market.

Source: The Standard November 20, 2020 15:11 UTC