- China has been pursuing a deleveraging campaign.
- Corporate bond defaults are rising in the country, especially among public companies.
- Risk in the bond market could spread to stocks.
China's turning down the money tap, and the effects are starting to be felt in the bond market.
Chinese policymakers have been focused on a deleveraging campaign, with total social financing, a measure of credit growth, decelerating to 10.5% year-on-year in April, the slowest reading since 2005. The main driver of that slowdown has been a contraction in off-balance sheet lending.
See the rest of the story at Business Insider
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See Also:
- Stocks go nowhere ahead of expected trade spats at G7 summit
- The Dow cracks 25,000 for the first time since May
- Stocks soar as Apple hits an all-time high
SEE ALSO: The next stock market crash will simply be a warm-up for an even bigger issue facing Main Street
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