Caution urged on China SOE bonds

Fidelity says investors should be careful when purchasing the notes of Chinese state-owned enterprises since these can have varying levels of government support.
Tightrope: only around 17% of Chinese SOEs receive strong day-to-day government support.
Tightrope: only around 17% of Chinese SOEs receive strong day-to-day government support.

State-owned enterprises are not as homogeneous in China as they are in other parts of Asia, so investors should be extra careful when buying their bonds, Fidelity Worldwide Investment said in a media press briefing today.  

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