ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
A TV screen in Shanghai shows a live news broadcast of Chinese President Xi Jinping speaking after the Communist Party congress on Oct. 25.   © Reuters

Chinese long rates surge as stimulus turns to discipline

More oversight for shady financial products could rattle debt-heavy banks

YUSHO CHO, Nikkei staff writer | China

SHANGHAI -- China's long-term interest rates marked a three-year high Monday amid speculation that the government will ramp up oversight of interbank trading and shady investment products in a campaign against financial risk.

Yields on benchmark 10-year government bonds topped 3.9% in trading Monday, reaching their highest level since October 2014. This may be because certain investors "believe holding government bonds in excess entails political risk" and so "are selling at full force," according to a fund manager for a bank here.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more