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China Inc Credit Stress Most Acute in Liaoning, Qinghai

China Inc. Credit Stress Most Acute in Liaoning, Qinghai Bloomberg 2/4/2021 Molly Dai (Bloomberg) China saw a record number of corporate defaults last year and that trend looks set to continue as policy makers try to tighten credit and pull back on stimulus this year. Those stresses aren’t distributed evenly across the country though, with companies in the provinces of Liaoning, Qinghai and Henan facing the most difficulty in raising funds at the moment, according to Bloomberg analysis of all corporate bonds issued in China. The data shows that firms in those three regions issued new bonds equal to less than 30% of the debt that matured over the last three months. Firms in other provinces such as Anhui and Zhejiang were in a much better position, issuing 251% and 171% more bonds than maturing debt, respectively. The ratio was 116% nationwide in January.

China Regulator Shakes Up Credit Ratings Rules in Wake of Confidence Blows to Investors

China Regulator Shakes Up Credit Ratings Rules in Wake of Confidence Blows to Investors Chinese companies will no longer be asked by the regulator to attest to how risky the companies and some of their interbank bonds are when registering the bonds with the regulator. China’s interbank bond market regulator is pushing for a more market-oriented approach to debt ratings following a series of high-profile defaults by highly rated state-owned companies (SOEs) that exposed how domestic credits ratings agencies soft-peddled the potential risks to investors. Under the changes, Chinese companies will no longer be asked by the regulator to attest to how risky the companies and some of their interbank bonds are when registering the bonds with the regulator.

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

The $2 5b default of chipmaker Tsinghua signals China has no mercy for debt-fuelled growth

The $2 5b default of chipmaker Tsinghua signals China has no mercy for debt-fuelled growth
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