Investor appetite for Chinese corporate bonds is expected to sweeten this year, as the country’s government implements stricter checks on the financial health of issuers.
The tougher scrutiny is much needed because the high default rates of Chinese corporate bonds this year and last have made investors think twice about buying these securities. The Chinese government has been seeking to attract more capital to the nation's cash-starved corporates, but must convince investors it is safe to put their money into corporate bonds.
“The stricter regulations will instil confidence in the market that investment in corporate bonds will be more sustainable,” Alexious Lee, head of...
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