A record high in corporate defaults is worsening China's debt problem

  • 📰 CNBC
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 72%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

Extremely tight credit conditions and a slowdown in China's economy led to a record amount of corporate defaults last year, according to experts.

div > div.group > p:first-child"> An economic slowdown and extremely tight credit conditions pushed corporate debt to a record high in China last year, according to experts.

Offshore corporate dollar bonds, or U.S. dollar-denominated debt issued by Chinese companies, followed the same trend. Nomura said the amount of such debt rose to $7 billion in 2018, from none the year before. Companies are facing tighter monetary conditions, aggravated by high borrowing costs, DBS said, adding that real interest rates shot up to 4.35 percent in January, from as low as -3.1 percent at the start of 2017.

Last year's defaults hit mostly companies in the private sector as compared to the last cycle in 2016, according to Edmund Goh, Asian fixed income investment manager at Aberdeen Standard Investments.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China using 'pay-day loan diplomacy' in the Pacific: U.S. diplomatChina's is using 'pay-day loan diplomacy' to exert influence in t... JohnHemmings2
Source: Reuters - 🏆 2. / 97 Read more »