Moody’s negative outlook underscores growing concern over Chinese companies’ credit conditions, following a slew of defaults recently. Photo: Xinhua

Chinese corporate bond defaults to rise in 2020, as regulators’ tolerance grows, Moody’s says

  • Overall credit conditions for non-financial companies will be negative in the next 12 months, rating agency says
  • 1 per cent can be tolerated by regulators, as long as defaults are isolated
Topic |   Bonds

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Moody’s negative outlook underscores growing concern over Chinese companies’ credit conditions, following a slew of defaults recently. Photo: Xinhua
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An increase in defaults reflects the highly-stretched liquidity conditions faced by China’s private firms. Photo: AFP

Major Chinese electronics maker Tunghsu seeks government lifeline after shock bond default as slowing economy leaves private firms cash-strapped

  • Tunghsu Optoelectronic Technology shocked the market by missing bond payments worth US$285 million even though it had recently reported huge cash holdings
  • Private companies have made up about 90 per cent of Chinese corporate defaulters this year amid slowing economy, crackdown on shadow banking
Topic |   Banking & Finance

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An increase in defaults reflects the highly-stretched liquidity conditions faced by China’s private firms. Photo: AFP
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