Russia’s invasion of Ukraine has raised doubts about the debt of Chinese state-owned lenders that international investors loaded up on for years
HONG KONG—International investors are rapidly unwinding what was once a popular trade in Chinese bonds.
For years, foreigners loaded up on debt from Chinese state-owned lenders known as policy banks, which fund domestic and overseas projects like dams, roads and airports. The easy-to-trade yuan-denominated bonds were viewed as almost as safe as China’s sovereign debt, and paid higher interest rates.
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