China CDS blow out to widest in more than six years amid selloff

LONDON: The cost of insuring exposure to China's sovereign debt rose to its highest since June 2016 on Monday, as the country's assets suffered a sharp selloff in the wake of the Communist Party Congress, data from S&P Global Market Intelligence showed.

China's five-year credit defaults swaps widened by 11 basis points (bps) from Friday's close to hit 128 bps, the data showed. China CDS started the year at 40 bps.

Hong Kong stocks slid to 13-year lows on Monday and the onshore yuan fell to its weakest in nearly 15 years as global investors dumped Chinese assets after Xi Jinping's new leadership team raised fears growth will be sacrificed for ideology-driven policies.