China Bond Defaults Rebound Further in July
Bloomberg
Published Aug 01, 2019 10:13PM ET
Updated Aug 01, 2019 10:56PM ET
China Bond Defaults Rebound Further in July
(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
- 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
(Updates with analyst’s comment in fourth bullet point.)
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.