China adopts 2-pronged bond policy

China is implementing policy designed to not only allow bonds access to cheap cash but also deter unwarranted spending on longer debt. "The central bank is trying to ease liquidity in the money market because the priority now is to support economic growth," said Dariusz Kowalczyk of Credit Agricole Credit & Investment Bank. "The stock market is quite highly correlated to liquidity conditions in China."

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