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If you thought China's equity bubble was scary, check out bonds

Though a collapse isn't quite imminent, China's 42t yuan bond market is flashing the same danger signs that triggered a tumble in stocks four months ago

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BIGGER WORRY: A bond market reversal would do more damage to the economy than the drop in shares and exacerbate capital flight from China, says Spanish lender Banco Bilbao in a worst-case scenario.

Hong Kong

AS A ROUT in Chinese stocks this year erased US$5 trillion of value, investors fled for safety in the nation's red-hot corporate bond market. They may have just moved from one bubble to another.

So says Commerzbank AG, which puts the chances of a crash by year-end at 20