China's $74b debt-equity swap will not save weaker firms

Despite Beijing’s funding support for companies, corporate bond defaults in China are expected to continue at a brisk pace this year.
PBOC deputy governor Pan Gongsheng: Defaults are good.
PBOC deputy governor Pan Gongsheng: Defaults are good.

Despite the Chinese government’s Rmb500 billion ($73.9 billion) debt-for-equity swap lifeline launched in the latter half of last year, a significant number of Chinese corporate bonds are expected to default this year. 

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