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Financial stress test: Why Beijing is worried about the bond market

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Published: September 20th, 2024,
Last updated: September 25th, 2024

Fearing a mass bond sell-off, China’s Central Bank is investing large sums in government bonds itself.
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Yields on Chinese government bonds have been at rock bottom for months. Beijing is anything but happy about this, even though low yields mean that new government debt can be raised at lower cost. However, the government fears the current situation could lead to a bubble jeopardizing financial stability.

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Economy Banks Financial market