China firms’ bond payment plans signal shift in policy focus


The proposed bond swap by a waste management firm and a privately negotiated repayment deal secured by a coal producer suggest policymakers are growing wary of the destabilising impact that surging bond failures could have on an ailing private sector.

Hong Kong: Plans by two distressed Chinese companies to ease their imminent debt crisis are betraying a subtle shift in Beijing’s delicate balancing act between combating financial risk and preserving stability as the coronavirus outbreak continues.

The proposed bond swap by a waste management firm and a privately negotiated repayment deal secured by a coal producer suggest policymakers are growing wary of the destabilising impact that surging bond failures could have on an ailing private sector.

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