China's Bond Market About to Face $80 Billion Redemption Test

China's Bond Market About to Face $80 Billion Redemption Test

Assessment

Interactive Video

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Business, Social Studies

University

Hard

The video discusses the concept of puttable bonds, which are not widely known in the global bond market. These bonds, often issued by weaker Chinese companies, allow investors to demand early repayment. With $80 billion of these bonds maturing soon, analysts predict increased default risks in China unless financial aid is provided. The video highlights the vulnerability of Chinese property developers due to economic slowdown and stricter loan regulations. Current policy measures are targeted but may need to be expanded to address industry-wide issues.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the potential consequences of the $80 billion worth of puttable bonds hitting the market.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What measures have Chinese policymakers taken to address the issues in the bond market?

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