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China Corporate Bond Defaults No Risk to Banks' Asset Quality: Fin News

CHINA PRESS

China's recent corporate bond defaults should limited impact on the asset quality of banks, as these bonds account for only a small portion of banks' proprietary bond investments which are mainly issued by the government and policy lenders, the PBOC-run newspaper Financial News reported on Tuesday citing analysts. Corporate bonds on banks' balance sheets amount to about CNY6 trillion, about 3% of their total bond investments, and those off-balance sheet bonds are worth about CNY10 trillion, the newspaper said citing calculations by Zhongtai Securities.

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