J P M O R G A N Asia Pacific Credit Research 04 September 2025 China State-Owned Enterprises A low-beta technicals-driven sector China SOEs have seen strong compression in recent years, as the widening offshore/ onshore yield differential has contributed to strong demand for and reduced the supply of China USD bonds. We are not concerned about rating pressure on SOEs, due to their improving fundamentals driven by SOE reform, and ratings anchored to China's sovereign rating. U.S. sanctions risk remains the k ...