Investors weigh risks of China’s $1.9trn credit market

Following the recent opening of China’s $7.3 trillion interbank bond market, the biggest flows are tipped to go into government and policy-bank bonds, but foreign investors are also itching to tap the $1.9 trillion credit segment for its higher yields.  Of course, corporate bonds come with commensurately higher risks, particularly in China. Hence fund managers – and mainland regulators – are sharpening their focus on mainland domestic ratings and credit risk, but this is easier sa…