Some debt defaults 'healthy' for China market: central bank | Bangkok Post: news

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Some debt defaults 'healthy' for China market: central bank

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China's central bank hinted Sunday that it was willing to accept some debt defaults in the $1.8 trillion wealth management market, as the world's second-largest economy struggles to curb bad debts that pose a risk to the financial system. 

Pan Gongsheng answers questions during a press conference in the first session of the 12th National People's Congress (NPC) in Beijing on March 13, 2013

"Under the premise of preventing systematic risks, allowing some default cases to happen naturally in compliance with market forces will... help rectify behaviours of product issuers and investors and benefit the healthy development of the wealth management market," People's Bank of China deputy governor Pan Gongsheng said at a forum in Shanghai.

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