How Bond Defaults Are Changing China's Markets
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 2 December 2019
⏱️ 35 minutes
🧾️ Download transcript
Summary
For years, defaults were few and far between in China's corporate bond market. Most investors thought that the Chinese government would never let companies — whether they be state-owned enterprises (SOEs) or private businesses — actually default on their debt. But times have changed. Defaults by private companies have been rising and there's even a question mark over the implicit government guarantee in debt sold by SOEs. One state-owned enterprise in Tianjin has proposed a 64% haircut for bond investors, in what could amount to the first de facto default by an SOE in more than two decades. On this week's episode of the Odd Lots podcast we speak with Jun Pan, Professor of Finance at Jiao Tong University, about her recent research examining what China's corporate bond prices are actually telling us about the health of its companies and wider economy.
See omnystudio.com/listener for privacy information.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | On December 4th and 5th, against the backdrop of the United Nations Climate Change Conference, |
| 0:05.2 | Bloomberg Green will convene the foremost leaders in business, finance, policy, academia, |
| 0:10.3 | and NGOs for candid conversations focused on creating solutions to support |
| 0:14.9 | the goals set forth at COP28. Join our community of global influencers and |
| 0:19.5 | problem solvers in Dubai to build connections, inspire innovation and challenge the status quo in the |
| 0:25.1 | battle against climate change. Register at Bloomberg Live.com slash B Green Radio. Hello and welcome to another episode of the Odd Lots Podcast, I'm Joe Wiesonthall. |
| 0:44.0 | I'm Tracy Allaway. |
| 0:46.0 | And I'm Joe Wiesenthal. |
| 0:48.0 | So Joe, you know I just came back from Beijing. |
| 0:51.0 | Yes, and we haven't even talked about it yet, but I saw all of your pictures and I'm extremely |
| 0:57.7 | jealous. |
| 0:58.7 | Yeah, the food was very good and you should be jealous because you missed out on quite a lot. |
| 1:05.2 | But you know, I hadn't... |
| 1:06.2 | You had some lamb thing, like a big like gigantic barbecued lamb that just looked like the best |
| 1:11.0 | thing I've ever seen. |
| 1:12.4 | Is that right? It was so thing I've ever seen. Is that right? |
| 1:12.9 | It was so good. |
| 1:14.2 | It was amazing. |
| 1:15.0 | It was like a Mongolian barbecued leg of lamb |
| 1:18.5 | that you grill at your own little table |
| 1:20.8 | and then you dip it into crushed peanuts and salt and it was good. |
| 1:25.8 | I'm allergic to peanuts but everything else sounded amazing. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Bloomberg, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Bloomberg and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.