China is likely to see a series of bond and financial product defaults as the government accelerates financial deregulation and allows more private ownership in the state-dominated sector, Li Keqiang, Chinese premier, said on Thursday.
Future defaults of financial products in China are “unavoidable” but the government will take steps to ensure they do not pose a threat to the wider financial system, Mr Li told journalists at his annual media conference.
China saw its first domestic bond default in recent history a week ago when Chaori Solar, a small Shanghai-based solar panel producer, failed to pay interest on Rmb1bn ($162m) worth of bonds it sold two years ago.
Read it all.
(FT) China’s Li Keqiang says defaults ”˜unavoidable’
China is likely to see a series of bond and financial product defaults as the government accelerates financial deregulation and allows more private ownership in the state-dominated sector, Li Keqiang, Chinese premier, said on Thursday.
Future defaults of financial products in China are “unavoidable” but the government will take steps to ensure they do not pose a threat to the wider financial system, Mr Li told journalists at his annual media conference.
China saw its first domestic bond default in recent history a week ago when Chaori Solar, a small Shanghai-based solar panel producer, failed to pay interest on Rmb1bn ($162m) worth of bonds it sold two years ago.
Read it all.