The People’s Bank of China (PBoC), China’s central bank, released draft rules on trading of defaulted matured bonds in the interbank market, sketching out definitions, information disclosure requirements and risk-avoidance measures investors should take, following a record wave of corporate defaults last year, reported Caixin.
Last year’s series of defaults on Chinese corporate bonds has continued into this year as businesses struggle with cooling economic growth. In 2018, defaults on corporate bonds soared nearly fourfold from 2017 to a record RMB 120 billion ($17.53 billion), exceeding the combined amount for the previous four years by almost RMB 10 billion.
Defaults on Chinese corporate bonds reached a record high last year and this wave has continued into this year as businesses struggle with cooling economic growth.
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