China's Credit Bond Market Sees New Defaults at Multi-Year Low

China's credit bond market risk has narrowed as local debt-reduction policies take effect, the market-based framework for handling credit risk improves, and liquidity stays relatively loose, according to 36Kr. Wind data showed only two new defaulting issuers in the credit bond market so far this year, with the new default rate at a multi-year low. Analysts said the recovery has been driven by several factors, including moderately accommodative monetary policy that has kept rates low and eased corporate financing pressure, as well as progress in defusing risks in key areas and clearing existing credit risk. They added that the new default rate is likely to remain near historic lows over the medium to long term, though weaker issuers at the tail end of the market still pose risks.