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A record pace of defaults hit China’s domestic bonds this year and the situation could worsen with nearly 40% of total outstanding corporate dollar bonds from China’s troubled companies due next year.  

There are $8.6 billion worth of offshore bonds coming due next year, which currently  have at least 15% yields, according to Bloomberg.  

Also, its worth noting that real-estate firms have $30 billion of dollar debt due next year and many of them have stressed-level debt, due to the drop in prices in the secondary market and the resulting spike in yields.  

So far, the news has not had any impact on USD/CNY. The pair is currently trading at 7.1195, representing marginal losses on the day.