By Addison Gong
01 Feb 2021
In this round-up, China’s official and the Caixin manufacturing Purchasing Managers’ Indexes fall amid a resurgence of local Covid-19 infections, creditors demand a bankruptcy reorganisation of beleaguered conglomerate HNA Group, and Xiaomi Corp files a lawsuit against the US’s decision to add it to a list of Chinese companies with alleged military ties.
China’s official January manufacturing Purchasing Managers’ Index (PMI) came at 51.3, down from December’s 51.9, with non-manufacturing PMI dropping to 52.4 from 55.7 the previous month, latest data from the National Bureau of Statistics showed.
The official manufacturing PMI reading reached a three-year peak of 52.1 in November 2020.
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(Bloomberg) Defaults by Chinese companies are likely to top last yearâs 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 2019âs. 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.
âThe central bank will implement more prudent monetary policies this year,â said Yuze Li, a credit analyst at China Merchants Securities. âMore companies may face refinancing pressure. As the maturities jump, the default amounts will climb by an estimated 10%-30% from the previous year,â he said, referring
The most beautiful daughter gets married off first, a Chinese saying goes. But sometimes, a favorite child can be so pampered, so high-maintenance, that she’s homebound well past her prime years. Eventually, everyone starts wondering if she will have any suitors at all. This is what’s happening at Tsinghua University, the prestigious, nearly 110-year old school that is President Xi Jinping’s alma mater. After defaulting in mid-November, Tsinghua Unigroup Co., a commercial arm and “favorite daughter” of the university, has brought in a government-led working group to diffuse its debt crisis. On Wednesday night, the company warned that it will not be able to repay a $450 million dollar-denominated bond due on Dec. 10.
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