China Bond Risk Exceeds Ireland as Defaults Unavoidable
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China’s default risk has risen beyond that of Ireland, having been on par with France and Japan a year ago, as Premier Li Keqiang said financial leverage is making the economy’s outlook more complex.
Five-year contracts protecting against non-payment on government debt climbed to 99 from 63 a year earlier, almost double the 49 for Japan and 51 for France, CMA credit-default swap data show. That compares with 88 for lower-rated Ireland, which exited a bailout in December. The yuan has lost 1.3 percent in the past month, the most in Asia, while the Shanghai Stock Exchange Composite Index has declined 5.2 percent.