China defaults are unnerving bond markets

In view of recent corporate defaults in China, Standard & Poor’s discusses what lies ahead for the country's credit market.

China defaults are unnerving bond markets

Why was Chaori’s default a landmark event for China’s bond market
For a long time there has been a market perception of implicit Chinese government support for companies, especially issuers of onshore bonds. That perception may be changing. Indeed, Chaori’s recent default signals greater government willingness to let borrowers be subjected to market discipline. It is clear that the Chinese government is beginning to address this difficult moral hazard and the issue surrounding an implicit state...

To continue reading, please login or register for free

Print Edition

FinanceAsia Print Edition

CONFERENCES

  • 2nd Compliance Summit Southeast Asia

    17 August 2017  |  Singapore
    The 2017 Compliance Summit Southeast Asia will take an in-depth look at the key compliance considerations today with a focus on regulation and new ...