China Companies Suspected of Buying Own Bonds to Boost Demand

China Companies Suspected of Buying Own Bonds to Boost Demand

Assessment

Interactive Video

Business

University

Hard

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The video discusses the liquidity crunch in China due to the PBOC's deleverage campaign, forcing companies to find creative ways to raise funds and avoid default. It explains how companies use structured debt and investment vehicles to manage risks, highlighting the lack of transparency and potential losses for investors. The video also touches on the regulatory response, noting that the government has not reacted due to the absence of a systemic risk.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What has been the response of regulators to the issues surrounding structured debt in China?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the transparency issues related to the structured debt market in China.

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