Beijing’s swift efforts to seize control of collapsed Inner Mongolia-based Baoshang Bank appears to have tamped down immediate fears of broader credit problems in China.
The collapse has raised investors’ concerns about the risks facing the nation’s small and medium sized banks and smaller companies. But it also appears to have emboldened some foreign fund managers to make renminbi bond investments with the tacit knowledge that Beijing will act to prevent a credit collapse.
On June 16, almost a month May 24 after the Chinese banking and insurance regulator said it was stepping in to help take over the liabilities of Baoshang via China Construction Bank,...
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