Opinion: Using bonds to block up China’s funding gap
Beijing’s move to encourage companies issuing domestic corporate bonds makes sense, given recent efforts to clamp down on bank lending as part of inflation-fighting efforts. But the country needs to address several issues if such a market is to be sustainable.
After years of relative neglect, Beijing is finally taking the development of its onshore bond market seriously.
Its intent is clear: to offer an alternative funding route during a time in which the nation is making concerted efforts to put a brake on loan growth.
For years, Chinese
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