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China debt crunch

Foreign investors shun corporate bonds in frenzy for Chinese debt

Holdings soar 54% to $445bn with focus on government securities

Until late last year, many investors viewed the bonds of Chinese state-owned companies as little riskier than that of the state itself. But 2020 proved them wrong.   © AP

HONG KONG -- Foreign investment has poured into Chinese domestic bonds over the past year in pursuit of high yields at a time when interest rates in much of the world hover around zero. But amid a spate of defaults, foreign holdings of Chinese corporate debt have declined, according to official data.

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