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China s Record $30 Billion Bond Defaults Seen Rising This Year

Bloomberg News, Bloomberg News BC-China’s-Record-$30-Billion-Bond-Defaults-Seen-Rising-This-Year , Bloomberg News (Bloomberg) Defaults by Chinese companies are likely to top last year’s record as tighter monetary policy squeezes borrowers, according to China Merchants Securities Co. Some 39 Chinese companies both domestically and offshore defaulted on nearly $30 billion of bonds in 2020, pushing the total value 14% above 2019’s. Locally, delinquencies fell to 137 billion yuan ($21 billion) from 142 billion yuan the previous year, while offshore they rose to $8.6 billion from $3.9 billion. “The central bank will implement more prudent monetary policies this year,” said Yuze Li, a credit analyst at China Merchants Securities. “More companies may face refinancing pressure. As the maturities jump, the default amounts will climb by an estimated 10%-30% from the previous year,” he said, referring

Chinese Chipmaker s $2 5 Billion Crisis Shows Growing Risks

Dec 11 2020, 4:40 AM December 10 2020, 7:22 AM December 11 2020, 4:40 AM (Bloomberg) China will almost certainly let a high-flying chipmaker default on $2.5 billion worth of dollar debt, the strongest signal yet that foreign investors shouldn’t count on Beijing to bail them out. (Bloomberg) China will almost certainly let a high-flying chipmaker default on $2.5 billion worth of dollar debt, the strongest signal yet that foreign investors shouldn’t count on Beijing to bail them out. Tsinghua Unigroup Co. said it won’t be able to repay the principal on a $450 million dollar bond due Thursday, which would trigger cross defaults on a further $2 billion of debt. This would be the company’s first dollar bond repayment failure and came after it defaulted on a 1.3 billion yuan ($199 million) local bond last month.

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