"Structural" defaults of bonds will.....>

CHINA PRESS: "Structural" defaults of bonds will continue as China maintains a

prudent and neutral monetary policy and the deleveraging campaign advances,

China Securities Journal said Friday. 

- Recent frequent defaults of bonds of Chinese companies have been partly the

result of supply-side reforms and deleveraging which exposed companies with

overcapacity, inadequate management, weak cash flow or high debt to real risks

they should have faced before: the Journal; 

- Given China's economic growth was solid last year, and the fact that companies

still have sufficient cash flow, risks of bond defaults are still controllable.

Credit risk should not be the main theme in the bond market this year: the

Journal.