(Bloomberg) — One of China’s biggest state-run investors is adding to the chorus of warnings over debt risks at the nation’s cash-strapped developers and local government financing vehicles.
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The National Council for Social Security Fund, which oversees about $417 billion according to the latest available figures, has advised asset managers that handle its money to sell some bonds including those from riskier LGFVs and private developers after a review, people familiar with the matter said, asking not to be identified discussing private information. Several of them mentioned that bonds from LGFVs in Tianjin, a debt-saddled northern port city, were singled out.
The recent Sino-Ocean Group Holding Ltd.’s debt rout raised the pension fund’s concerns as one of its biggest asset managers holds a large position in the state-backed developer’s debt, the people said. That triggered the request for a health check of their exposure to riskier LGFVs and…
2023-07-12 20:23:07
Source from finance.yahoo.com
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