China debt crunchForeign 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
KENJI KAWASE, Nikkei Asia chief business news correspondent
January 8, 2021 17:41 JST
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.