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China CDS hit highest in more than five years - S&P Global Market Intelligence

Published 10/11/2022, 07:08 AM
Updated 10/11/2022, 07:11 AM
© Reuters. FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo
SPGI
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LONDON (Reuters) - The cost of insuring exposure to China's sovereign debt rose to the highest level since January 2017 on Tuesday, data from S&P Global (NYSE:SPGI) Market Intelligence showed.

China's five-year credit defaults swaps added 5 basis points (bps) from Monday's close to hit 112 bps, the data showed. China CDS started the year at 40 bps.

© Reuters. FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

With the exception of its deeply indebted property sector, which has also been the target of a policy crackdown, China's external debt levels are contained.

However, Prolonged COVID-19 lockdowns and long-running disputes over technology with the United States have weighed heavily on domestic consumption and growth.

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