Introduction

Contents

1. Defaults, extensions make 70% of China high-yield 'uninvestable'

2: Credit risk analysis: China's dollar-bond default rate may set record high above 5.4%

3. China's secondary bond market: Offshore volumes continue falling

4. China primary bond market: China ESG led in April

5. Appendix: Key functions

6. Additional charts: Distressed securities and subscription trends

*Disclaimer

In our latest edition of the China Market Insights, we share our view on the current condition of China's high-yield real-estate bond market, where about 70% of bonds have become uninvestable for funds with strict mandates. Our analysis shows China's offshore dollar-bond default rate could trend toward 6% before improving in 2H22. In the domestic market, chengtou issuers will continue to receive support for new issuance as China returns to its traditional driver of economic growth, infrastructure investment. China ESG issuance led in April.

John Lee
Regional Market Analyst
Bloomberg Intelligence

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