PBOC Set to Look Through Credit Pain as it Tapers Stimulus

China’s central bank remains on course to taper its emergency support even as a string of defaults by government-linked companies sends tremors through the credit markets. Officials have been preparing investors about the possibility of withdrawing some of that stimulus as the economic recovery picks up pace, Bloomberg News reported. While a surge in market interest rates this week following the defaults appears to have complicated that plan, economists say it won’t push the People’s Bank of China off its policy course. Investors were rattled this week when a top Chinese chipmaker and a major car manufacturer were the latest to join a growing list of companies to default. A Chinese residential developer said Thursday it failed to repay investors who requested early redemptions. Read more