Moody s Chinese joint venture suspended over 1b yuan default by Yongcheng Coal & Electricity thestandard.com.hk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestandard.com.hk Daily Mail and Mail on Sunday newspapers.
Ex-Finance Minister’s Call for Bond Market Reform Sparks Central Bank Pushback
Although reform of China’s stock markets has accelerated since the meltdown in the summer of 2015, reform of the bond market has lagged, a former Chinese finance minister said in a recent criticism of the market reform efforts. Photo: IC Photo
A row over how to overhaul China’s bond market has spilled over into the public domain after former Finance Minister Lou Jiwei launched a broad-brush attack on the country’s regulators and warned that if reforms aren’t speeded up, the market could well be the source of another buildup of financial risk.
The Big Reset seekingalpha.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from seekingalpha.com Daily Mail and Mail on Sunday newspapers.
Defaults raise concerns on financial markets over Chinese debt
A series of defaults over the past month on loans by companies that were thought to have state backing for their debts has sent a tremor through Chinese capitalism’s financial markets and raised significant questions for international investors.
According to Fitch Ratings, state-owned firms defaulted on a record $6.1 billion worth of bonds between January and October, an amount as much as the previous two years combined. But in November the problems significantly worsened, with defaults by three major companies.
The first sign of deeper trouble surfaced last month when the state-owned coal company Yongcheng Coal and Electricity Holding Group, located in central China, defaulted on a bond worth $152 million.
By GlobalCapital
18 Dec 2020
In the final part of GlobalCapital China’s awards announcements, we reveal the year’s key innovation – and the individual who has made the greatest contribution to reforming and internationalising the onshore market.
MOST IMPRESSIVE MARKET INNOVATION
Coronavirus-prevention bonds
This year will go down in history for fundamentally changing the way people live and work, at least temporarily.
It was the year that international relations, healthcare systems, trust in governments and social bonds were tested. It will be the year to see the deepest global economic recession since the Second World War, and a year marked by extreme swings in the bond, commodity and stock markets globally.