Is this a government bond bubble? Investment money with nowhere to go [Chinese economy column]
2024-07-14 00:26:00
A "government bond bubble" is currently occurring in China. In the bond market, there has been an increasing trend to buy 10-year government bonds, causing yields to fall to 2.183% in July, the lowest level since 2000. As the real estate slump creates uncertainty about the future of the economy, money that has nowhere to go is flowing into the bond market. Some are saying that a trend known as "Japanification," in which the economy falls into a long-term stagnation like the Japanese economy of the past, has begun in China's financial markets. What is going on? (China Bureau Reporter Shimomura Naoto)
