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China funds go big on bank debt as corporate defaults rise

Lenders sell 6.2 trillion yuan of certificates of deposit in the first half, tripling from 1.7 trillion yuan a year ago
Tuesday, July 19, 2016 - 05:50

Shanghai

CHINESE fund managers have tightened their risk controls and are loading up on short-term paper of banks, which they consider less likely to default than companies.

Lenders sold 6.2 trillion yuan (S$1.25 trillion) of certificates of deposit (CDs) in the first half,