Defaults


Threat of surge in real estate bonds defaults has China worried 

Threat of surge in real estate bonds defaults has China worried 

(ATF) Marking an historic breakthrough, the amount of domestic and foreign bond-financed real estate debt maturing in January was set to be about 144.7 billion yuan, an increase of 118.9% year-on-year despite the sector being beset with default issues. But these worrying amounts of debt now have Chinese officials poised …

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Defaults force China to boost scrutiny of bond rating agencies

Defaults force China to boost scrutiny of bond rating agencies

(ATF) The People’s Bank of China has pledged to improve supervision of the bond rating sector after a series of defaults rattled the country’s $4 trillion corporate debt market. Meanwhile, a former executive at one of China’s top credit rating agencies has been suspended amid claims he took “massive” bribes.Pan …

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China’s SOE Defaults: What’s Happening?

China’s SOE Defaults: What’s Happening?

Some local state-owned enterprises (SOE) have defaulted recently, causing a sell-off in the Chinese fixed income market. This means some more short-term upward pressure on Chinese yields, which have gone up to 3.2% and 3.3% for 5-year and 10-year CGB, respectively, from less than 2.0% and 2.5%, respectively, in 2Q20.This …

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Chinese developers face $53bn debt tsunami

Developers face $53bn debt tsunami

(ATF) Real estate companies are facing a surge of bond defaults as a one-third of a trillion yuan of debt as the once-booming industry struggles to recover from the pandemic downturn. With financing costs rising, debt loads climbing and falling sales eroding liquidity, many firms will be unable to pay …

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