The ethics storm brewing over Chinese government bonds

Alluring returns come at cost of facilitating Beijing's repression

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The yields on offer are too attractive to forgo. © Sipa/AP

Fraser Howie is co-author of "Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise." He has worked in China's capital markets since 1992.

Global investors chasing after high returns have been pouring money into Chinese government bonds lately at a record pace. This raises the question of whether they are prepared for the possible ethical investing storm they may be stirring up.

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