Financial institutions acquiring Chinese government bonds may be inadvertently shorting the economy, according to industry sources and experts.

State media reports that financial institutions acquiring Chinese government bonds are effectively shorting the economy, as per the views of industry sources and experts. This comes after the People's Bank of China raised concerns and introduced plans to sell treasury bonds to curb a bond rally. China's central bank aims to maintain normal upward-sloping yield curves and manage bond market risks.

July 13, 2024
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