While China runs aboslutely massive trade surpluses thanks to being nearly the sole exporter of masks, gloves, PPE and other medical and pandemic related equipment, China's currency, the Yuam, has been allowed to strengthen by the PBOC, China's Central Bank, to around 6.5 Chinese Yuan to the Dollar the last few months. Rapid China Inflows Spur Call for Strongest Yuan Since 1993 https://finance.yahoo.com/news/relentless-china-inflows-spur-call-230000959.html Because of these factors, more foreign institutional investors want to buy Chinese bonds. However, beneath the surface there are major issues with Chinese State owned Enterprise (SOE) bonds as a number of AAA rated SOEs have surprisingly defaulted on their bonds in the last 2 months. Foreign investors are ignoring these risks for now and capital is still pouring into China. Investors Are Learning to Live With China’s Credit Defaults https://finance.yahoo.com/news/investors-learning-live-china-credit-013326372.html Other articles about Chinese SOE bond defaults from the last 2 months: 1) China Lenders’ Holdings of Corporate Debt Fall as Defaults Climb https://finance.yahoo.com/news/china-lenders-holdings-corporate-debt-043919402.html 2) China State Firms Once Deemed ‘Safe’ Now Rocked by Defaults https://www.msn.com/en-us/money/other/china-state-firms-once-deemed-e2-80-98safe-e2-80-99-now-rocked-by-defaults/ar-BB1bBWKe 3) These AAA Bonds Are Tumbling as China Default Fears Spread https://ca.finance.yahoo.com/news/aaa-rated-bonds-tumbling-china-200000548.html 4) RPT-ANALYSIS-China's bond defaults show Beijing's war on debt is back https://www.reuters.com/article/china-debt-soe-idUSL1N2IA0JK 5) China debt defaults stoke unease about 'broader market contagion' https://finance.yahoo.com/news/china-debt-defaults-stoke-unease-093000666.html MSCI to remove 10 Chinese securities from its indices after US blacklist https://www.scmp.com/news/china/article/3114106/msci-remove-10-chinese-securities-its-indices-after-us-blacklist Nasdaq to remove four Chinese companies' shares from indexes after U.S. order https://finance.yahoo.com/news/nasdaq-remove-shares-4-chinese-230744021.html Dueling Perspectives On China's Economic Reality (w/ Kyle Bass and Michael Pettis) https://youtu.be/LKjA_yPyaYM Commit to tipping us monthly for our hard work creating high level, thought provoking content that includes interviews with top experts, analysis and short videos about investing and the economy https://www.patreon.com/wallstformainst Please visit the Wall St for Main St website here: http://www.wallstformainst.com/ Follow Jason Burack on Twitter @JasonEBurack Follow Wall St for Main St on Twitter @WallStforMainSt You can also checkout the Wall St for Main St Facebook Fanpage at http://www.facebook.com/WallStforMainSt or the Wall St for Main St Facebook Group where you can learn and join in on the conversation! Also, please take 5 minutes to leave us a good iTunes review here! We only have about 86 5 star iTunes reviews and we need to get to our goal of over 100 5 star iTunes reviews asap! https://itunes.apple.com/us/podcast/wall-street-for-main-street/id506204437 If you feel like donating fiat via Paypal, Bitcoin, Gold Money, or mailing us some physical gold or silver, Wall St for Main St accepts one time donations on our main website or through Paypal. Send one time donations to our Paypal to the email address: [email protected] Donate Crypto Currency to WS4MS: Send Bitcoin to: 1N5iDrazojYX5rWxmoyp982RDXJzJrFoPC Send Ethereum (ETH) to: 0x748dD59fA5d5dF80E8C0038DD4F60DAb810fe61a Send Litecoin to: MW7g44j5FX9CYEkvfPvxsW5dFjHY84yup4 Send DASH to: XuEEhWptwf1XxP2nFYQxmBfBBJYehqRoBJ Send Zcash (ZEC) to: t1MGcxyWpiH6JeyF9nnWHw9poRpvTW4PT6S Send Bitcoin Cash (BCH) to: qr7mp7f053rwnpxalxljl3f9x5tulzv53ya88d7wch Wall St for Main St is also available for personalized investor education and paid research work (we write research reports and teach). Please email us to learn more about the research work we offer at: [email protected] **DISCLAIMER- ANYTHING MENTIONED DURING THIS AUDIO OR SHORT VIDEO RECORDING IS FOR INFORMATION & EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT ADVICE. JASON BURACK AND HIS GUESTS ARE MERELY STATING THEIR OPINIONS ON DIFFERENT TOPICS RELATED TO INVESTING, THE ECONOMY, MARKETS OR COMPANIES. PLEASE TALK TO YOUR INVESTMENT ADVISOR AND DO ADDITIONAL RESEARCH AND DUE DILIGENCE ON YOUR OWN BEFORE INVESTING AND MAKING IMPORTANT INVESTMENT DECISIONS.- DISCLAIMER**