Markets ignore coming glut of new bonds from local governments
by Craig Stephen
HONG KONG (MarketWatch) — China’s economy may have run out of growth before it ran out of credit, but no one told its companies.
One of the biggest China puzzles today is the seemingly never-ending ability of its corporates to access new supplies of credit, without running into trouble or someone saying no.
Some analysts warn that we are looking in the wrong place for distress; it could be building in the government bond market.
This year, China’s easy money policy has been most graphically on display through an unprecedented overseas buying spree by its companies.