Junk bonds the way forward for China: ex-PBoC deputy

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Chinese firms should issue junk bonds to raise funds as the country looks to move away from its traditional reliance on bank lending, a former deputy governor of the People's Bank of China (PBoC) said on Sunday.

Junk bonds, which are rated BB or below because of the high attached risk of default, are also referred to as high-yielding or speculative bonds.

Guo Shuqing, who was a vice-governor of the central bank from 1998 to 2001, told the Financial Times, a business newspaper, that junk bonds wo

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