Finance Professor interviewed by The Wall Street Journal. on "In China, Not All Triple-A-Rated Bonds Are Created Equal"

Prof Winnie Poon, Associate Professor in the Department of Finance and Insurance, was interviewed by the Wall Street Journal (華爾街日報) on Chinese bond market and credit-rating industry in an article, “In China, Not All Triple-A-Rated Bonds Are Created Equal”, published on 22 October 2020.

Extract from this WSJ article with her interview, “A seven-year study of the Chinese bond market and credit-rating industry found that more than 90% of domestic ratings were rated double-A or higher in a sample of 6,528 bonds. Domestic raters tend to pool bonds with very different default risks into one of the top three rating notches, it said.

Winnie Poon, a professor of finance at Lingnan University in Hong Kong and a co-author of the study, said more recently, domestic raters have also upgraded a significant number of corporate bonds from so-called local government financing vehicles that have issued debt to fund infrastructure projects.”  

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