SHANGHAI: China's central bank injected more than 120 billion yuan into the country's banking system on Monday in a move to soothe rattled nerves after a series of debt shocks involving state-owned enterprises led to a bond sell-off last week.
Chinese banks and fund managers dumped their holdings of corporate bonds last week following a default by state-owned Yongcheng Coal & Electricity Holding Group, just weeks after the company raised money through a debt issue. But the company's woes come amid a series of defaults and downgrades of SOEs that have shaken investors' assumptions about what constitutes a safe investment.
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