Junk bonds the way forward for China: ex-PBoC deputy

row-of-three-red-and-gold-chinese-lanterns

Chinese firms should issue junk bonds to raise funds as the country looks to move away from its traditional reliance on bank lending, a former deputy governor of the People's Bank of China (PBoC) said on Sunday.

Junk bonds, which are rated BB or below because of the high attached risk of default, are also referred to as high-yielding or speculative bonds.

Guo Shuqing, who was a vice-governor of the central bank from 1998 to 2001, told the Financial Times, a business newspaper, that junk bonds

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.