How The Red Ponzi Rolls—-Explosion Of “Perpetuals”To Circumvent Debt Limits

China’s bond market is hosting a battle of wills between the country’s leadership and lower-ranking officials and corporate bosses. They are fighting over perpetual bonds, debtlike securities that lack a maturity date and technically never need to be repaid. Issuance has surged since the start of 2018, partly because state-backed companies see them as a way to hit Beijing-mandated debt-reduction targets without going through a painful restructuring or diluting government control.