“Chinese regulators have asked banks to report their ability to meet short-term obligations after a rapid sale of bonds triggered a spate of investors withdrawing from fixed income products.according to people familiar with the matter,” Bloomberg reported early Thursday morning.
The news has also mentioned that the unscheduled regulatory consultations coincided with the biggest slump in China’s short-term public debt since mid-2020.
Bloomberg has also mentioned that the fall, spurred by a shift towards riskier assets including stocks, led retail investors to withdraw money from wealth management products, fueling a spiral of price declines and accelerating withdrawals. . “Losses also spread to the highest-rated corporate bonds, stoking a record rise in yields this week.“adds the news.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
