Search ForexCrunch

China’s corporate debt defaults are set to exceed 100 billion yuan for the third consecutive year, highlighting the coronavirus pandemic’s negative impact on the economy. 

According to Bloomberg, a surge in missed repayment obligations in the past two weeks drove onshore delinquencies to 104 billion yuan ($15.8 billion) so far this year. The offshore figure is $8.1 billion, 2.1 times the total in 2019.

More debt defaults may be seen in the near-term, as policymakers have reportedly vowed a “zero-tolerance” approach to violations in the bond market with the economy recovering from the coronavirus-induced slowdown.

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.