Foxconn’s factory in the Guizhou provincial capital of Guiyang on 28 May 2018. Guiyang Foxconn factory produced 16 million smartphones for Nokia and Huawei in 2017, aiming to reach 30 million units in 2018. Photo: EPA-EFE

China’s iceberg of hidden debt shows the biggest risks in provinces dominated by local authorities and state enterprises

  • Local government financing vehicles (LGFVs) have sold 7.5 trillion yuan (US$1.1 trillion) of debt
  • The highest yields on these debt had been sold in provinces where the public sector dominates the economy
Topic |   Bonds

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Foxconn’s factory in the Guizhou provincial capital of Guiyang on 28 May 2018. Guiyang Foxconn factory produced 16 million smartphones for Nokia and Huawei in 2017, aiming to reach 30 million units in 2018. Photo: EPA-EFE
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Illustration: Henry Wong

Brutal interventions in Sanpower’s debt workout show why China’s deleveraging campaign has long ways to go

  • Until Sanpower missed its bond payments, its acquisitions in 2014 and 2015 had mostly been spared the scrutiny of the nation’s financial regulators
  • Its debt-fuelled shopping spree underscores the challenge faced by banks as they struggle to untangle the debt owed by corporate borrowers, city governments and state enterprises in the nation’s ‘deleveraging campaign’
Topic |   Banking & Finance

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Illustration: Henry Wong
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