Date
15 December 2017

PBoC appears open to some debt defaults, paper says

China’s central bank has hinted that it is willing to accept some debt defaults in the US$1.8 trillion wealth management market, Shanghai Daily reported Monday. People’s Bank of China deputy governor Pan Gongsheng told a forum in Hongkou District Sunday that “under the premise of preventing systematic risks, allowing some default cases to happen naturally in compliance with market forces will … help rectify behavior of product issuers and investors and benefit the healthy development of the wealth management market,” the report said. Pan also called for better disclosure on risk and information of financial products to investors, it said.

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