Concerns about the viability of China’s smaller banks was highlighted last year when the central bank and regulator seized control of unlisted Baoshang Bank for a year. A Beijing branch is shown here. Photo: Bloomberg

Chinese banks stampede to offer perpetual bonds as incentives spur risky debt issuance

  • Banks, including smaller ones without easy access to capital markets, increasingly issuing riskier bank debt
  • Bond holders get hit first if banks go into trouble
Topic |   China economy
Concerns about the viability of China’s smaller banks was highlighted last year when the central bank and regulator seized control of unlisted Baoshang Bank for a year. A Beijing branch is shown here. Photo: Bloomberg
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