Jun Pan

Jun Pan, a Professor of Finance at Jiao Tong University, discusses the seismic shift in China's corporate bond market. With rising defaults among private companies, the long-held belief in government-backed debt is unraveling. A striking case involves a state-owned enterprise proposing a massive haircut for investors, potentially signaling the first significant default from an SOE in decades. Pan highlights the changing landscape of credit risks, the evolution from bank reliance to market-based lending, and the implications for both domestic and international investors.