One of China's biggest state-owned enterprises decides to shut the Swiss bank out of advising on a major bond deal
According to a report by the Financial Times, China Railway Construction Corporation has decided not to hire UBS on a dollar-bond sale after comments made by the firm's economist about food inflation last week. Adam had that story pinned up here but the fallout is widening as China looks to be "boycotting" the firm in a more pronounced manner now.
For some context, UBS had earlier won a mandate on the bond sale of $500 million to $1 billion by the Chinese group but was removed as of this morning.
This is starting to ring similar bells to the Dolce & Gabbana controversy in China last year and even public apologies won't really do much to matter at this point. The "boycott" here is much of an isolated issue at the moment but it is one of many debatable examples that underscores further separation between China and the Western world as of late.
Makes you wonder how local authorities there feel about US tariffs and a trade war.
