This week, on March 22, we commented on the rapidly growing corporate bond bubble in China and why its ever-increasing size could be a problem in the future and why even China’s central bank governor is worried about it.
Société Générale said yields for riskier wealth management products (WMP) have been rising, which usually shows investors are risk-averse.
On March 23, we got confirmation why they are risk-averse. According to Caixin, the state-owned enterprise (SOE) Guangxi Nonferrous Metals Group Co. defaulted on $2.31 billion of its debts, including debts to banks, suppliers, as well as private bondholders.
Société Générale
