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Investors bullish on junk bonds as Beijing clamps down on defaults

China's move comes ahead of 1.53 trillion yuan of onshore bonds that are due in the fourth quarter, the most on record, compared with 1.48 trillion yuan in the previous three months.


CHINA has stanched a string of defaults and further speculation that authorities will continue to stave off failures is leaving investors the most bullish on local junk bonds in five years, despite record maturities.

Only two notes have suffered nonpayment this quarter.