1. How big is the problem?
Chinese defaults were at a record pace by mid-year with more than $25 billion in onshore and offshore payment failures. That compares to $29.9 billion for all of 2020. Defaults in the private sector in China actually dropped early last year, largely due to pandemic-related pressure valves such as delaying repayments, swapping bonds or canceling early repayment. However, the year ended with 140.1 billion yuan ($21.6 billion) in onshore defaults, almost matching the record of more than 143.6 billion yuan in 2019. (The 2018 total of 122 billion yuan was itself more than quadruple the level in 2017.)
2. Where are defaults hitting?
Real estate firms ma…
Read the full article at: https://www.washingtonpost.com/business/energy/how-defaults-in-china-are-reshaping-its-credit-market-quicktake/2021/07/15/45e8d3d8-e5e8-11eb-88c5-4fd6382c47cb_story.html
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