China’s Bailout Window May Shut in Three Months, OCBC Says
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China will likely prop up bondholders in any onshore defaults until August to ensure a smooth clean up of its local debt mess, according to Oversea-Chinese Banking Corp.
Events this year have defied Chinese rhetoric on embracing market-based reforms, after authorities passed up chances to make investors stomach losses from two local defaults, the bank wrote in a report Monday. This week sees a potential third missed payment after beverages bottle maker Zhuhai Zhongfu Enterprise Co. said it can only partly pay principal due May 28.