The record number of corporate defaults in China has improved risk pricing in the world’s third largest bond market. Despite this, Chinese corporate bonds have a long way to go to attract foreign investment.
“This year, there is a very obvious improvement in risk pricing in the risk premium in the onshore and offshore markets of Chinese issuers,” said Iris Pang, greater China economist of ING Bank.
“In the past, the credit spread between low quality corporate credit compared with moderate credit risk was very low in the Chinese onshore market. Now it has widened, which reflects a higher premium. The improvement is quite substantial,” Pang...
¬ Haymarket Media Limited. All rights reserved.
