24 Jul 2014
China avoids second corporate bond default - ING
FXStreet (Łódź) - Tim Condon from INF remarks believes that the bailout provided by Chinese authorities to a construction company on the brink of default reinforces policy flexibility to manage the love-hate relation associated with such events.
Key quotes
“The authorities have the policy flexibility to manage the love-hate relation with corporate defaults – we love hard budget constraints but we hate the hard-landing risk they pose.”
“A 2.03% rally in the Hang Seng China Enterprise Index yesterday erased the year-to-date loss.”
“The Shanghai composite has rallied 1.5% month-to-date, which follows consecutive 0.6% and 0.4% rallies in May and June.”
“What’s changed is the economy’s failure to hard land, again.”
“Positive contagion from China made emerging market equities (the iShares JP Morgan MSCI Emerging Markets Index Fund) the top performing broad asset class in the second quarter.”
Key quotes
“The authorities have the policy flexibility to manage the love-hate relation with corporate defaults – we love hard budget constraints but we hate the hard-landing risk they pose.”
“A 2.03% rally in the Hang Seng China Enterprise Index yesterday erased the year-to-date loss.”
“The Shanghai composite has rallied 1.5% month-to-date, which follows consecutive 0.6% and 0.4% rallies in May and June.”
“What’s changed is the economy’s failure to hard land, again.”
“Positive contagion from China made emerging market equities (the iShares JP Morgan MSCI Emerging Markets Index Fund) the top performing broad asset class in the second quarter.”