China firms tap 'virus bonds' but use funds for other purposes

Shanghai

CHINESE companies are rushing to access cheap funds via "virus bonds" as they capitalise on Beijing's efforts to channel money into virus-hit areas of the economy, but prospectuses show most of the funds so raised will be used for other purposes.

A Reuters analysis reveals only a third of the roughly 14 billion yuan (S$2.79 billion) being raised under a new fast-track regulatory process for "virus prevention and control bonds" will actually be used for the cause.