China Mulls More Local Bond Sales To Help Pay Risky Hidden Debt
Portfolio Pulse from Charles Gross
China is considering increasing local bond sales to help pay off its risky hidden debt, according to Bloomberg. This move could potentially impact the iShares China Large-Cap ETF (FXI), which tracks large Chinese companies.
July 07, 2023 | 11:34 am
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The potential increase in local bond sales in China to pay off hidden debt could impact the iShares China Large-Cap ETF (FXI).
The increase in local bond sales could indicate a higher level of financial risk in China, which could negatively impact the performance of large Chinese companies. As FXI tracks these companies, it could also be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80