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China needs better and deeper bond markets

Decisive bond market reforms could mitigate the rising risks in property and local government funding vehicles

by William Pesek July 14, 2023July 17, 2023

China's yuan-denominated corporate bonds had a good year in 2023. Image: Twitter

As Chinese tech equities rally, tensions building up in the US$20 trillion bond market risk pulling the rug out from under the sudden rush of bullish stock market sentiment.

China’s Big Tech shares are surging after Premier Li Qiang signaled a sharper pivot away from regulatory crackdowns toward championing the private sector.

Just days after letting Jack Ma’s Ant Group off with a nearly US$1 billion fine, Beijing said it’s increasing support for Tencent and other top tech platforms to raise China’s innovative game.