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More China SOE Bond Defaults Likely: Daily

CHINA PRESS

The number of defaults on SOE-issued bonds may rise as the government encourages market-based solutions for troubled companies, the Securities Daily reported citing Li Chang, an analyst from S&P Global Ratings. The widening spreads on new bonds issued by SOEs could raise the financing costs for weaker SOEs who could potentially default amid a period of tightening monetary policy, Li said.

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