China’s industrial strength keeps it from ‘turning Japanese’

China's 30-year government bond yield fell below its Japanese equivalent in November 2024, a significant development in financial markets. This convergence of bond yields sparked fears that China's economy might be vulnerable to a crisis similar to Japan's in the 1990s, which led to decades of deflation and stagnant growth. The concern is that China's economy, like Japan's, might struggle with low growth and deflation if its asset price bubble bursts.

Why it matters

China's bond yields are falling, which could attract investors and boost market confidence. This could lead to increased demand for Chinese bonds and a stronger economy.

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to South China Morning Post. For information only — not financial advice.