Impact of virus outbreak on firms' ability to repay bonds not huge - PBOC official
The PBOC continues to try to calm down the market
- The virus outbreak definitely has impact on firms' ability to repay bonds
- But the overall effect is not huge
- Still expects bond default risks to decline overall this year
Again, this fits largely into the narrative that China is going to keep a more optimistic view on the outbreak situation from hereon. I'd like to emphasise once more that it would be better to keep a look out on further stimulus measures for a sense of how things are rather than to follow headline narratives such as the above.