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Industrial and Commercial Bank of China plans to issue $9.6-billion (U.S.) of “bail-in bonds.”
Industrial and Commercial Bank of China plans to issue $9.6-billion (U.S.) of “bail-in bonds.”
(FRANCOIS LENOIR/REUTERS)

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China’s bail-in bonds sow seeds of conflict

When China’s banks make a mess, the government usually pays the cleanup bill. But Industrial and Commercial Bank of China’s plan to issue $9.6-billion (U.S.) of so-called “bail-in bonds” suggests the costs of the next crisis will be spread more widely. For investors, there’s room for confusion and conflict.