Chinese Investors Scoop Up Corporate Bonds Again as Stocks Slide

Investors are returning to China’s corporate bond market again as a two-week stock market surge starts to lose steam.

Yields of most onshore bonds sold by Chinese companies declined about 10 basis points across different tenors and ratings Friday morning, according to two credit traders. The rally is set to ease what would be the worst week of trading in nearly two years for the country’s junk debt market.

The world’s second-largest bond market has witnessed mounting selloff pressure as investors rush to take funds out of fixed-income products and chase a stock rally. But falling bond prices ...