China's bond market is 'overheating': Bloomberg poll

Shanghai

THE bursting of China's stockmarket bubble has scattered money into corporate bonds, causing them to overheat, financial companies surveyed by Bloomberg say.

Nineteen of 21 respondents said that the credit market is "overheating", according to the survey sent to onshore analysts, traders and fund managers. Some 60 per cent forecast that corporate bond yield premiums will widen in the fourth quarter. That would mark a shift after the difference between five-year AAA company securities and government notes dropped to a six-year low of 83.6 basis points on Sept 7.