Connect with us

Popular World News

China Bond Defaults Rebound Further in July By Bloomberg

China Bond Defaults Rebound Further in July By Bloomberg


China Bond Defaults Rebound Further in July By Bloomberg


(Bloomberg) — China onshore corporate bond defaults reached at least 14.4 billion yuan ($2.1 billion) from 14 notes in July, the highest level since the March peak. This brings the total year-to-date defaults to 70.9 billion yuan from 89 bonds.

  • Real estate sector with 10.2b yuan defaults tops year-to-date default list, followed by wholesale (9.5b yuan) and retail sales sector (7.9b yuan)
  • Investment companies topped last month’s defaults, accounting for 45% of monthly total amount
    • Jiangsu, Anhui provinces and Shanghai City were among the top 3 default locations

Read: At Least 60 Chinese Companies Face Debt Repayment Pressure

  • Small and medium-sized banks and non-bank financial institutions are cutting their holdings of lower-rated credit bonds after regulators assumed control of Baoshang Bank, according to Zhao Xue, head of fixed income at Shanxi Securities Co.
  • Private-sector companies are still having hard time to obtain funding, as net financing of corporate bonds in private enterprises decline for three straight months, said Dong Dezhi, a fixed-income analyst at Guosen Securities
    • Baoshang takeover is the first government seizure of a bank in two decades, which highlights the difficulty of cleaning up risky lending practices without triggering a loss of faith in banks

NOTE: Monthly defaulted amount may be revised based on the latest company announcements and bondholder’s conference resolution announcements.

(Updates with analyst’s comment in fourth bullet point.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!