With the beginning of the year Chinese firms have defaulted on domestic bonds for $ 5.8 billion.
Chinese bond market in 2019 may be faced with the largest default in the amount of 13 trillion dollars. This is stated in the analysis of Bloomberg, published on 8 may.
According to data compiled by the Agency for the first four months of this year, Chinese companies have already defaulted on domestic bonds in the amount of $ 5.8 billion.
This is approximately 3.4 times more than in the same period in 2018.
As underlined by the Agency, if nothing changes, in 2019 will demonstrate a new high by default for Chinese bond market.
The reason for this Bloomberg sees the reduction of financing companies. China continues to exert pressure on banks to provide loans to private business (especially small and medium).
At the same time, the country’s authorities, reminds Agency, focused on the curtailment of shadow banking where credit decisions were made with little control by regulatory authorities.
So, the surge of default, the authors of the research, began in late 2017 and continues to this day.
Among private companies, which defaulted on most bonds this year − the company Neoglory Holding Group (is the main enterprise for the conglomerate, which covers real estate investment), a manufacturer of iron wire Shandong SNTON Group, China Minsheng Investment Group Corp., Citic Guoan Group Co. and Goocoo Investment Co.
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