Inconvenient Truth Thwarts Xi as China State Buyouts Lift Bonds
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President Xi Jinping’s calls for less state influence in the economy are running into an inconvenient truth in China’s bond market, where the hint of a government takeover can spur an overnight rally.
State-owned China National Building Material Co. drove a record 5 percent gain in China Shanshui Cement Group Ltd. notes in a single day last week by saying it’s considering raising its stake in the firm. Government-backed China Communications Construction Group gave a boost to Greentown China Holdings Ltd. debt by becoming the builder’s largest shareholder in May.