https://www.scmp.com/rss/501983/feed Our millennial-focused articles on how to deal with debt, including credit card payments, banking, debt advice, debt support, creditors and money-saving. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Ralph Jennings Ralph Jennings Fiscal strains are forcing Chinese provinces to slash their budget-revenue expectations for 2026 due to the knock-on effects of a five-year property market slump, and analysts cite the shift as a warning sign that intense debt pressures continue to drag down the nation’s economic growth outlook. Major provinces are budgeting for 2 to 3 per cent growth this year in general public operating revenue, broadly in line with last year but below broader economic growth targets, Fitch Ratings said in a... https://www.scmp.com/economy/china-economy/article/3343499/chinese-provinces-slash-revenue-outlook-analysts-warn-debt-control?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343499/chinese-provinces-slash-revenue-outlook-analysts-warn-debt-control?utm_source=rss_feed Fri, 13 Feb 2026 15:00:08 +0000 Xinyi Wu Xinyi Wu China trimmed its holdings of US Treasuries in November to the lowest level since 2008, diverging from a global trend that saw total foreign ownership of the debt instruments hit a record high. Analysts say the prospect of a politicised Federal Reserve chairmanship under Donald Trump’s presidency has deepened Beijing’s concerns over its exposure to American debt, with more cuts expected. Beijing’s stockpile fell to US$682.6 billion in November, down from US$688.7 billion in October, according to... https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3340164/china-dumps-more-us-debt-buys-other-assets-trump-targets-powell?utm_source=rss_feed Fri, 16 Jan 2026 13:00:09 +0000 Carol Yang,Ji Siqi Carol Yang,Ji Siqi China’s central bank has unveiled a credit-rehabilitation policy to help individuals who defaulted on small loans rebuild their financial standing – part of a broader push to bolster the economy and repair household balance sheets. The People’s Bank of China said the measure targets borrowers with a single instance of overdue debt incurred between 2020 and 2025 and not exceeding 10,000 yuan (US$1,421). If the debt is fully repaid by March 31, the default record will be hidden from credit... https://www.scmp.com/economy/china-economy/article/3337354/china-hide-bad-debt-records-pandemic-hit-borrowers-who-repay-small-loans?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3337354/china-hide-bad-debt-records-pandemic-hit-borrowers-who-repay-small-loans?utm_source=rss_feed Mon, 22 Dec 2025 13:00:28 +0000 Xinyi Wu Xinyi Wu As China works to defuse its debt risks, and with unchained US borrowing rocketing skyward, Ray Dalio finds himself at the centre of an important conversation in Beijing – advising top officials as they face a delicate path ahead. Chinese officials rolled out the red carpet this week for the billionaire investor and founder of Bridgewater Associates – one of the world’s largest hedge funds – as his words of caution on the risks facing major global economies appear to be increasingly resonating... https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed Wed, 24 Sep 2025 11:00:10 +0000 Ji Siqi Ji Siqi As China drafts its 15th five-year plan – the next entry in a line of expansive blueprints that have set the tone for the country’s development over more than seven decades – we examine how these documents inform and reflect high-level policy priorities, and what to expect in the coming iteration, such as how it could help alleviate local-level financial woes. For more entries in this ongoing series, click here. In late March, an announcement by the central Hubei province sent a shiver down the... https://www.scmp.com/economy/china-economy/article/3326531/chinas-local-governments-urgently-need-cash-can-5-year-plan-find-it?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326531/chinas-local-governments-urgently-need-cash-can-5-year-plan-find-it?utm_source=rss_feed Tue, 23 Sep 2025 22:00:10 +0000 Sylvia Ma Sylvia Ma Concerns over China’s local-level debt have long loomed large in international discourse, with a mountain of “hidden” debt viewed as a “ticking time bomb” that threatens to trigger a cascade of defaults while posing a risk to financial stability. But some experts now contend that, after a sweeping debt-restructuring campaign, the outlook for China is shifting. And they say that, by comparison, the debt challenges facing the United States are causing considerable alarm. “After years of effort,... https://www.scmp.com/economy/china-economy/article/3321048/china-defuses-its-time-bomb-debt-us-hears-ticking-intensify?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321048/china-defuses-its-time-bomb-debt-us-hears-ticking-intensify?utm_source=rss_feed Thu, 07 Aug 2025 06:01:14 +0000 Salina Li,Aileen Chuang,Enoch Yiu Salina Li,Aileen Chuang,Enoch Yiu Airport Authority Hong Kong is in talks with New World Development (NWD) to get a massive commercial property project at the heart of Hong Kong’s international airport back on track, according to several sources familiar with the matter. The authority is considering the option of seeking a new partner to undertake and complete the work at 11 Skies shopping centre, which was awarded in 2018, the sources said. The financial terms of the move are still under negotiation, they said, declining to be... https://www.scmp.com/business/article/3319501/hong-kong-seeks-new-partner-get-11-skies-back-track-amid-new-worlds-debt-sources?utm_source=rss_feed https://www.scmp.com/business/article/3319501/hong-kong-seeks-new-partner-get-11-skies-back-track-amid-new-worlds-debt-sources?utm_source=rss_feed Fri, 25 Jul 2025 03:22:57 +0000 Kandy Wong Kandy Wong China has become the leading debt collector of developing countries, shifting from a net capital provider, “as bills coming due from its belt and road lending surge in the 2010s now far outstrip new loan disbursements”, according to new research. In 2025, about 75 of the world’s poorest and most vulnerable countries will make “record high debt repayments” totalling US$22 billion to China, according to research released on Monday by an Australian think tank, the Lowy Institute, as a result of... https://www.scmp.com/economy/china-economy/article/3311813/time-chinas-belt-and-road-partners-pony-debt-comes-due-think-tank-finds?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3311813/time-chinas-belt-and-road-partners-pony-debt-comes-due-think-tank-finds?utm_source=rss_feed Mon, 26 May 2025 12:00:08 +0000 China’s finance ministry named and shamed eight local authorities on Thursday for adding implicit debt, in the latest move to hold local officials accountable for vanity projects and irresponsible borrowings. In an online statement, the Ministry of Finance said the move was to “enhance fiscal disciplines and “serve as a warning”, as the world’s second-largest economy is at an important juncture of battling a daunting debt mountain while staving off financial risks. The biggest sum of implicit... https://www.scmp.com/economy/policy/article/3279014/china-warns-struggling-regions-be-more-strict-and-accountable-curbing-hidden-debt?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3279014/china-warns-struggling-regions-be-more-strict-and-accountable-curbing-hidden-debt?utm_source=rss_feed Thu, 19 Sep 2024 06:00:14 +0000 Bloomberg Bloomberg Thailand’s new government plans to expedite a sweeping debt restructuring to tackle an estimated US$475 billion of household liability, offer financial assistance to small businesses and accelerate fiscal stimulus to lift growth. The debt revamp will cover the entire system, and will be especially targeted at providing relief to borrowers of car and home loans, according to a draft policy statement. Prime Minister Paetongtarn Shinawatra is due to announce the plans in parliament on Thursday. The... https://www.scmp.com/news/asia/southeast-asia/article/3277710/thailand-drowning-household-debt-new-prime-minister-wants-change?utm_source=rss_feed https://www.scmp.com/news/asia/southeast-asia/article/3277710/thailand-drowning-household-debt-new-prime-minister-wants-change?utm_source=rss_feed Mon, 09 Sep 2024 02:32:09 +0000 China’s rescue plan to resolve its local government debt crisis has thus far provided only temporary fixes, with default risks remaining significant and the debt pile set to grow in the coming two years, according to a new S&P Global Ratings report. A series of measures implemented a year ago after a meeting of the Politburo – the centre of power within the Communist Party – included a debt-swap programme and loan restructuring aimed at defusing what threatens to be a financial time bomb that... https://www.scmp.com/economy/economic-indicators/article/3272025/chinas-crippling-debt-levels-seen-worsening-government-measures-focus-buying-time?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3272025/chinas-crippling-debt-levels-seen-worsening-government-measures-focus-buying-time?utm_source=rss_feed Fri, 26 Jul 2024 10:15:12 +0000 China has set out an ambitious plan to overhaul the taxation system to help cash-strapped local governments rebuild the fraying social safety net and improve people’s livelihoods. This aspect of the reform agenda is critical, and getting it right will help underpin the restructuring of the overall economy. Fiscal reform is therefore welcome and long overdue. Over the next five years, China will aim for a “clear division of responsibilities, coordinated financial resources and regional balance”... https://www.scmp.com/opinion/article/3271765/fiscal-shake-must-be-success-sake-china-economy?utm_source=rss_feed https://www.scmp.com/opinion/article/3271765/fiscal-shake-must-be-success-sake-china-economy?utm_source=rss_feed Wed, 24 Jul 2024 16:17:29 +0000 SCMP Reporter SCMP Reporter Chinese banks are heading overseas to expand their loan books and fund Belt and Road Initiative (BRI) projects, but such a bold strategy may not be employed by lenders who are unfamiliar with the assessment of credit risks in the countries along the route. The belt and road project was spearheaded by Beijing and endorsed by President Xi Jinping in late 2013, aiming to improve trade and economic integration across Asia, Europe and Africa. Bank of China priced three bonds in overseas markets last... https://www.scmp.com/business/banking-finance/article/3268135/chinese-banks-follow-belt-and-road-map-expand-loan-book-liquidity-tightens-home?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3268135/chinese-banks-follow-belt-and-road-map-expand-loan-book-liquidity-tightens-home?utm_source=rss_feed Sun, 30 Jun 2024 22:00:09 +0000 Yating Yang Yating Yang A court in China has devised an innovative method of shaming and catching debtors – by inserting an amusement arcade claw machine above the heads of fugitives in bounty notices. The animation strategy was introduced via an online post on June 2 by Hengfeng County People’s Court in Shangrao, Jiangxi province, in eastern China, according to a report by Star News. It shows the debtor’s photo placed among stuffed toys in an arcade claw machine. The claw grabs the “head” of the debtor, dragging it to... https://www.scmp.com/news/people-culture/trending-china/article/3268252/china-court-employs-quirky-arcade-claw-machine-animation-bid-snare-fugitive-debtors?utm_source=rss_feed https://www.scmp.com/news/people-culture/trending-china/article/3268252/china-court-employs-quirky-arcade-claw-machine-animation-bid-snare-fugitive-debtors?utm_source=rss_feed Fri, 28 Jun 2024 02:10:08 +0000 Yulu Ao Yulu Ao Indebted Chinese developer Kaisa Group Holdings was granted another reprieve after a Hong Kong court on Monday adjourned a hearing, allowing the company more time to restructure its debts. The next hearing will be on August 12, Justice Peter Ng Kar-fai announced, giving the Shenzhen-based developer more time to convince its debt holders and stave off liquidation. The Hong Kong court had adjourned the hearing several times, and the initial petitioner Broad Peak Investment dropped out from the... https://www.scmp.com/business/china-business/article/3267753/hong-kong-court-pushes-kaisas-liquidation-case-august-12-giving-developer-breather?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3267753/hong-kong-court-pushes-kaisas-liquidation-case-august-12-giving-developer-breather?utm_source=rss_feed Mon, 24 Jun 2024 02:13:12 +0000 Chinese developer Road King Infrastructure (RKI) is warning investors that it may default if they do not accept its proposals to buy some bonds back at discounts and give the company more time to pay the rest of the debt. The firm offered to purchase five offshore dollar bonds at a price of US$257.50 to US$515 per US$1,000 principal amount, but the maximum consideration would be US$60 million, according to its so-called tender offer and consent solicitation plan earlier this month. Other notes... https://www.scmp.com/business/banking-finance/article/3267507/chinese-builder-road-king-warns-default-risk-unless-creditors-extend-debt?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3267507/chinese-builder-road-king-warns-default-risk-unless-creditors-extend-debt?utm_source=rss_feed Fri, 21 Jun 2024 06:42:03 +0000 China’s local governments appear to be chipping away at their massive “hidden debt” piles. But with a fresh estimate putting the total around 32.2 trillion yuan (US$4.44 trillion), those piles still equate to a perilous mountain that Beijing has taken greater steps to conquer since last year to stave off an avalanche of risks. “The expansion rate of interest-bearing debt of local government financing vehicles (LGFVs) has slowed down significantly, and the momentum of disorderly expansion of... https://www.scmp.com/economy/economic-indicators/article/3266653/chinas-hidden-debt-seen-shrinking-scaling-mountain-remains-daunting-challenge?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3266653/chinas-hidden-debt-seen-shrinking-scaling-mountain-remains-daunting-challenge?utm_source=rss_feed Fri, 14 Jun 2024 10:15:15 +0000 China’s troubled state-backed distressed asset managers have been given the green light to expand their operations, but analysts are increasingly doubtful about their ability to mitigate risks to the nation’s financial system. Analytics firm S&P Ratings said on Tuesday that it expected China’s four main asset management companies (AMCs) – firms originally set up to isolate and manage bad debt for the nation’s biggest banks – to continue playing a stabilising role amid the property crisis. “[But]... https://www.scmp.com/economy/economic-indicators/article/3263788/chinas-distressed-asset-managers-spotlight-rescue-role-troubled-state-backed-firms-questioned-amid?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3263788/chinas-distressed-asset-managers-spotlight-rescue-role-troubled-state-backed-firms-questioned-amid?utm_source=rss_feed Thu, 23 May 2024 10:00:16 +0000 Oaktree Capital Management’s takeover of Italian football club Inter Milan has left its former Chinese boss with a net worth close to zero, the final blow in the collapse of the one-time billionaire’s sprawling empire. Zhang Jindong was worth about US$6 billion when he bought almost 70 per cent of the club in 2016. His private company, Suning Holdings Group, lacked the name recognition of Jack Ma’s Alibaba Group Holding or Hui Ka Yan’s China Evergrande Group, but Zhang was close to both founders... https://www.scmp.com/business/china-business/article/3263794/suning-boss-burns-billion-dollar-fortune-soured-bet-inter-milan-delivers-blow-founders-walmart-plus?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3263794/suning-boss-burns-billion-dollar-fortune-soured-bet-inter-milan-delivers-blow-founders-walmart-plus?utm_source=rss_feed Thu, 23 May 2024 08:44:37 +0000 Aiming to address a surge in disputes over payments in a time of mounting household debt, China has issued new guidelines for responsible lending and collection. The new rules, outlined by the National Internet Finance Association of China in a circular to members on Wednesday, lay out a set of standard practices for debt collection along with a call for lenders to deal fairly and transparently with borrowers. The instructions state that financial institutions should “comprehensively and... https://www.scmp.com/economy/economic-indicators/article/3262942/chinas-murky-debt-collections-get-new-rules-dont-harass-no-late-night-operations-dont-enter-homes?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3262942/chinas-murky-debt-collections-get-new-rules-dont-harass-no-late-night-operations-dont-enter-homes?utm_source=rss_feed Thu, 16 May 2024 11:30:15 +0000 The International Monetary Fund warned the Maldives against looming “debt distress” on Monday, as the small but strategically placed luxury tourist destination looks set to borrow more from main creditor China. Since winning office last year, President Mohamed Muizzu has reoriented the atoll nation – known for its upmarket beach resorts and celebrity holidaymakers – away from traditional benefactor India and towards Beijing. Last month his party won parliamentary elections in a landslide after... https://www.scmp.com/news/asia/south-asia/article/3262518/chinese-loans-looming-maldives-gets-imf-warning-over-debt-distress?utm_source=rss_feed https://www.scmp.com/news/asia/south-asia/article/3262518/chinese-loans-looming-maldives-gets-imf-warning-over-debt-distress?utm_source=rss_feed Mon, 13 May 2024 10:29:34 +0000 UBS considering introducing a reward system for investment bankers who refer clients to the firm’s wealth management business, according to people with knowledge of the matter. Some bankers would likely be in line for payouts in Asia and Europe when they successfully attract new money to the lender’s private banking unit, said the people, asking not to be identified discussing confidential plans. The referral fees would be a first for the Zurich-based lender, echoing earlier incentives that... https://www.scmp.com/business/banking-finance/article/3262193/ubs-weighs-bonus-investment-bankers-who-refer-rich-clients?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3262193/ubs-weighs-bonus-investment-bankers-who-refer-rich-clients?utm_source=rss_feed Fri, 10 May 2024 09:03:24 +0000 The rapid build-up of public debt was on the minds of finance ministers gathered in Washington recently for the spring meetings of the International Monetary Fund and the World Bank. With the US Federal Reserve likely to keep interest rates higher for longer, inflation stubbornly unyielding worldwide, and the dollar’s rally, pressures are mounting for urgent relief for heavily indebted low-income countries. The solutions that surfaced in Washington focused on retooling current approaches while... https://www.scmp.com/opinion/world-opinion/article/3260088/imf-world-bank-must-do-more-defuse-bomb-poor-nations-debt?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3260088/imf-world-bank-must-do-more-defuse-bomb-poor-nations-debt?utm_source=rss_feed Thu, 25 Apr 2024 12:30:13 +0000 A Chinese tycoon who had snapped up mansions and offices in Hong Kong and London faces demands from banks to repay more than $200 million of loans for which he and his family had provided personal guarantees. Nanyang Commercial Bank has demanded payment from Chen Hongtian, chairman of Hong Kong-based Cheung Kei Group, and his wife, Chen Li Ni Yao, on five overdue term-loan facilities totalling HK$799 million (US$102 million), including default interest, according to a writ dated April 17. Each... https://www.scmp.com/business/banking-finance/article/3259866/chinese-tycoon-chen-hongtian-faces-demands-more-us200-million-overdue-property-related-loans?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3259866/chinese-tycoon-chen-hongtian-faces-demands-more-us200-million-overdue-property-related-loans?utm_source=rss_feed Mon, 22 Apr 2024 04:34:36 +0000 Country Garden is pushing back some onshore bond payments to later dates despite a round of extensions last year, according to people familiar with the matter, underscoring the financial stress at the Chinese property developer. The builder’s main onshore unit plans to extend coupon and principal instalment payments for a yuan bond maturing in March 2026 to September, said the people, after missing a 96 million yuan (US$13 million) coupon payment on March 12, before a 30-day grace period kicked... https://www.scmp.com/business/china-business/article/3259280/country-garden-seeks-extend-some-onshore-bonds-again-slump-home-sales-worsens-cash-crunch?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3259280/country-garden-seeks-extend-some-onshore-bonds-again-slump-home-sales-worsens-cash-crunch?utm_source=rss_feed Wed, 17 Apr 2024 05:30:23 +0000 Fosun International, one of China’s largest private-sector conglomerates, has agreed to sell an 8.2 per cent stake in Belgian insurer Ageas to BNP Paribas for about €670 million (US$714 million) as part of an effort to reduce its debt amid economic turbulence. A deal involving the sale of 15.4 million shares of Ageas was concluded on Friday, the Shanghai-based group said in a filing to the Hong Kong stock exchange. “The disposal is part of the company’s efforts [towards] streamlining its... https://www.scmp.com/business/china-business/article/3259066/chinas-fosun-international-sells-stake-belgian-insurer-ageas-bnp-paribas-reduce-debt-focus-core?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3259066/chinas-fosun-international-sells-stake-belgian-insurer-ageas-bnp-paribas-reduce-debt-focus-core?utm_source=rss_feed Mon, 15 Apr 2024 10:00:28 +0000 A two-decade pursuit of vanity projects has left many local authorities in China in a deep morass of debt, with their status as “the largest local defaulters” not only having a knock-on effect on private businesses, but also adding to a grass-roots governance crisis, an academic has warned. Feng Chuan, an associate professor at Wuhan University’s School of Political Science and Public Administration, called for greater efforts to rebuild social trust and business confidence after finding that... https://www.scmp.com/economy/economic-indicators/article/3257981/chinas-local-government-debt-woes-hurting-private-firms-creating-grass-roots-distrust-academic?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3257981/chinas-local-government-debt-woes-hurting-private-firms-creating-grass-roots-distrust-academic?utm_source=rss_feed Sun, 07 Apr 2024 00:00:11 +0000 Fosun International, one of China’s largest private sector conglomerates, will hasten its exits from noncore businesses to lower its indebtedness and focus on its cash-flow generating assets in a bid to sustain its turnaround. The company, whose businesses span a wide range of industries including tourism, pharmaceuticals, real estate and financial services, aims to cut its debts by 10 billion yuan (US$1.38 billion) annually in the next two to three years and improve its financial profile,... https://www.scmp.com/business/china-business/article/3257068/chinese-conglomerate-fosun-international-accelerate-asset-sales-deleveraging-campaign-boosts?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3257068/chinese-conglomerate-fosun-international-accelerate-asset-sales-deleveraging-campaign-boosts?utm_source=rss_feed Thu, 28 Mar 2024 07:46:22 +0000 Hong Kong-based Gaw Capital and Pacific Aegis Capital Management Group (PACM) are building a US$400 million war chest to tap lending opportunities backed by properties in the city as they embrace the unloved real estate sector after it was shunned by banks taking a negative economic view. Private equity firm Gaw Capital has started raising a US$100 million credit fund that will make loans against Hong Kong property, on the heels of real estate private credit firm PACM’s plan for a US$300 million... https://www.scmp.com/business/banking-finance/article/3255796/hong-kong-private-credit-goes-where-banks-fear-tread-loans-against-property?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3255796/hong-kong-private-credit-goes-where-banks-fear-tread-loans-against-property?utm_source=rss_feed Tue, 19 Mar 2024 00:30:11 +0000 Fosun Tourism Group, the leisure and tourism unit of Chinese conglomerate Fosun International, is courting both domestic and international investors in a move that is in line with its asset-light strategy. Investors who “share the same values and agree upon the company’s strategy” are welcome to acquire stakes in all units, Xu Xiaoliang, Fosun Tourism’s chairman, said during a media briefing on Friday. Fosun Tourism, which owns popular resort chain operator Club Med, reported a net profit of... https://www.scmp.com/business/china-business/article/3255596/club-med-owner-fosun-tourism-courts-investors-return-profitability-days-after-reports-debt-concerns?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3255596/club-med-owner-fosun-tourism-courts-investors-return-profitability-days-after-reports-debt-concerns?utm_source=rss_feed Fri, 15 Mar 2024 12:15:10 +0000 After more than a decade, a rapid and debt-inducing construction spree in one of China’s poorest regions appears to be significantly abating. But analysts suggest it will take years for Guizhou province to reduce its burden amid a series of controversies surrounding how local governments continue to handle their financial problems. The southwestern province, known for its undulating hills and mountains, also boasts some of the world’s most spectacular bridges and roads. It is also among the most... https://www.scmp.com/economy/china-economy/article/3254680/chinas-debt-ridden-guizhou-faces-reckoning-after-years-splashing-out-pricey-projects?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3254680/chinas-debt-ridden-guizhou-faces-reckoning-after-years-splashing-out-pricey-projects?utm_source=rss_feed Sat, 09 Mar 2024 04:00:14 +0000 The fervent backlash reverberated through social media after it was revealed that city-level authorities in an indebted Chinese province had arrested entrepreneur Ma Yijiayi for trying to recoup millions in back payments from the government. Since 2016, her construction firm had been contracted by Liupanshui city in Guizhou province to build 10 local projects, including kindergartens, primary schools, museums, resorts and hotels, according to a report on Monday by the Beijing-based China... https://www.scmp.com/economy/china-economy/article/3253705/chinese-businesswomans-arrest-after-demanding-us30-million-arrears-local-government-triggers?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3253705/chinese-businesswomans-arrest-after-demanding-us30-million-arrears-local-government-triggers?utm_source=rss_feed Thu, 29 Feb 2024 11:35:42 +0000 China’s small businesses say shrinking market demand is their biggest pain point, while payment delays are also compounding the challenges facing their daily operations, according to recent findings by Peking University. The results, based on a survey of 9,252 small and micro-sized firms across the country in December, reflect how the country’s beleaguered economy has yet to elevate the employment-vital sector to its pre-pandemic levels. “A significant factor contributing to the operational... https://www.scmp.com/economy/china-economy/article/3253537/chinas-vulnerable-small-businesses-have-had-it-arrears-they-need-be-paid-policies-fall-short-survey?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3253537/chinas-vulnerable-small-businesses-have-had-it-arrears-they-need-be-paid-policies-fall-short-survey?utm_source=rss_feed Thu, 29 Feb 2024 00:00:14 +0000 Global restructuring specialists Alvarez & Marsal and Houlihan Lokey have boosted headcount in Hong Kong as China’s property crisis results in a surge in debt restructuring deals – making them a rare bright spot in hiring for the city’s financial sector. China’s property industry, a key pillar of the world’s second-largest economy, has lurched from one crisis to another since 2021 after a regulatory crackdown on debt-fuelled construction triggered a liquidity squeeze. According to a Reuters... https://www.scmp.com/business/banking-finance/article/3253325/restructuring-specialists-boost-hong-kong-staff-china-property-crisis-stokes-demand?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3253325/restructuring-specialists-boost-hong-kong-staff-china-property-crisis-stokes-demand?utm_source=rss_feed Tue, 27 Feb 2024 03:58:25 +0000 About 100 minibuses have been towed away after owners failed to repay bank loans, Hong Kong operators have said, citing practical pandemic-induced challenges. Chow Kwok-keung, the chairman of the Taxi and Public Light Bus Association, said on Thursday banks had not requested early payments, but some owners’ minibuses were taken away because of overdue instalments. He warned 100 more minibuses might face the same fate if the government did not intervene. “Over the past three years, about 100... https://www.scmp.com/news/hong-kong/society/article/3252839/100-minibuses-repossessed-hong-kong-after-owners-failed-repay-bank-loans-operators?utm_source=rss_feed https://www.scmp.com/news/hong-kong/society/article/3252839/100-minibuses-repossessed-hong-kong-after-owners-failed-repay-bank-loans-operators?utm_source=rss_feed Thu, 22 Feb 2024 09:01:38 +0000 China’s 5.2 per cent rise in gross domestic product (GDP) last year, despite beating its annual target and still well outpacing growth in developed Western countries, has yet to convince the market that all is well in the world’s second-largest economy, according to observers. And the race is on as policymakers grapple with the ramifications of four distressing “Ds” – debt, deflation, de-risking and demographics – that continue to bog down the 126-trillion-yuan (US$17.67 trillion) economy at the... https://www.scmp.com/economy/china-economy/article/3249136/chinas-three-legged-race-fend-4-ds-economic-apocalypse?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3249136/chinas-three-legged-race-fend-4-ds-economic-apocalypse?utm_source=rss_feed Sat, 20 Jan 2024 14:00:18 +0000 China’s local government financing vehicles (LGFV) need to pay back a record amount of maturing local bonds this year, testing the limits of a central government program to help them refinance their debt and avoid default. The nation’s LGFVs — the companies that borrow on behalf of provinces and cities to finance mainly infrastructure projects, such as roads and ports — have 4.65 trillion yuan (US$651 billion) worth of bonds due over the next 12 months, according to Bloomberg-compiled data.... https://www.scmp.com/business/banking-finance/article/3247232/chinas-lgfvs-must-repay-record-us651-billion-bonds-2024?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3247232/chinas-lgfvs-must-repay-record-us651-billion-bonds-2024?utm_source=rss_feed Thu, 04 Jan 2024 05:23:59 +0000 The cash-strapped Dalian Wanda Group, a major Chinese conglomerate and the country’s largest shopping mall operator, has sold its luxury hotel in Shanghai to Indonesian pulp and paper billionaire Sukanto Tanoto as it looks to overcome a liquidity crisis. The 193-room luxury hotel, opened in June 2016, is located in Shanghai’s famed Bund waterfront and was acquired last month by Singapore-based Pacific Eagle Real Estate, the property investment and development arm of Tanoto’s conglomerate, RGE... https://www.scmp.com/business/banking-finance/article/3247162/cash-starved-chinese-property-group-dalian-wanda-sells-shanghai-luxury-hotel-indonesian-billionaire?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3247162/cash-starved-chinese-property-group-dalian-wanda-sells-shanghai-luxury-hotel-indonesian-billionaire?utm_source=rss_feed Wed, 03 Jan 2024 10:30:19 +0000 China’s top leaders are expected to assemble soon at the central economic work conference in Beijing to hammer out economic goals for 2024. This is the fourth part in a series looking at what to expect from China’s economy next year. When Shanghai announced it would modernise water systems for households in suburban areas, the initiative generated a stir among local residents keen on seeing quality-of-life improvements. Through the pilot scheme, about 10,000 households in suburban towns may... https://www.scmp.com/economy/china-economy/article/3244430/china-debt-beyond-boondoggles-china-worth-further-investment-and-why-water-controversial?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3244430/china-debt-beyond-boondoggles-china-worth-further-investment-and-why-water-controversial?utm_source=rss_feed Sun, 10 Dec 2023 22:00:26 +0000 A Hong Kong man suffered multiple injuries from a fall on Wednesday after he tried to escape captors who had allegedly held him over a HK$2 million (US$255,832) football gambling debt. The 23-year-old man attempted to climb out of a fifth-floor industrial building window, but fell onto the first-floor podium. Emergency personnel were called to Yue Fung Industrial Building on Chai Wan Kok Street in Tsuen Wan at around 5.30am, after police were alerted to the incident by a passer-by who discovered... https://www.scmp.com/news/hong-kong/law-and-crime/article/3244111/hong-kong-man-injured-fall-after-allegedly-escaping-captivity-over-hk2-million-football-gambling?utm_source=rss_feed https://www.scmp.com/news/hong-kong/law-and-crime/article/3244111/hong-kong-man-injured-fall-after-allegedly-escaping-captivity-over-hk2-million-football-gambling?utm_source=rss_feed Wed, 06 Dec 2023 12:58:17 +0000 In a rare acknowledgement of the regional financial struggles facing one of China’s most destitute regions, state media has reported on the crushing fiscal pressure resulting from overstaffing. The report by China Comment, a fortnightly current-affairs magazine affiliated with Xinhua, a Communist Party mouthpiece, explored how the continuous expansion of government workers has taken a toll on local-level finances. The report was based on the magazine’s recent visit to an unidentified county in... https://www.scmp.com/economy/china-economy/article/3243563/cash-strapped-china-county-hired-army-temporary-civil-servants-their-paltry-salaries-us2300-year-are?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3243563/cash-strapped-china-county-hired-army-temporary-civil-servants-their-paltry-salaries-us2300-year-are?utm_source=rss_feed Fri, 01 Dec 2023 23:00:09 +0000 Zhongzhi Enterprise Group, one of mainland China’s largest shadow banks, has warned investors that it is unable to repay its debts, setting off alarm bells in the trust sector which invests a large portion of investors’ money in real estate projects. The Beijing-based wealth management company said late on Wednesday its total liabilities had mounted to between 420 billion yuan (US$59 billion) and 460 billion yuan, while its total tangible assets stood at just 200 billion yuan, implying a... https://www.scmp.com/business/banking-finance/article/3242550/troubled-chinese-shadow-bank-zhongzhi-warns-it-severely-insolvent-after-asset-shortfall-failed?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3242550/troubled-chinese-shadow-bank-zhongzhi-warns-it-severely-insolvent-after-asset-shortfall-failed?utm_source=rss_feed Thu, 23 Nov 2023 05:41:55 +0000 State-owned Chinese developer Lujiazui Corp has vowed to safeguard the interests of its shareholders as it seeks more than 10 billion yuan (US$1.37 billion) in compensation for what it claims is a heavily polluted land parcel in Suzhou, west of Shanghai. The company, officially known as Shanghai Lujiazui Finance and Trade Zone Development, said in an exchange filing on Monday that a lawsuit it filed nine days ago in higher court would reveal the truth and minimise financial losses. It also said... https://www.scmp.com/business/china-business/article/3241385/shanghai-developer-lujiazui-corp-pledges-us137-billion-lawsuit-will-prove-claim-about-polluted?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3241385/shanghai-developer-lujiazui-corp-pledges-us137-billion-lawsuit-will-prove-claim-about-polluted?utm_source=rss_feed Mon, 13 Nov 2023 14:30:10 +0000 China is lending less for overseas infrastructure projects but issuing more yuan-denominated emergency loans to ensure that its own banks get at least partly repaid for old projects such as ports and railways, analysts say. The move illustrates Beijing’s ramped-up efforts to deal with distressed economies, many of which are facing default risks amid a prolonged US rate-hike cycle, and the initiative marks a different approach from Western countries, which continue to pressure the Chinese... https://www.scmp.com/economy/china-economy/article/3241088/chinas-emergency-yuan-loans-debt-beset-nations-mark-strategic-pivot-helping-poorer-countries-pay?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3241088/chinas-emergency-yuan-loans-debt-beset-nations-mark-strategic-pivot-helping-poorer-countries-pay?utm_source=rss_feed Fri, 10 Nov 2023 11:30:17 +0000 Naming and shaming local-level governments and state banks for violating financing rules, Beijing is painting a bullseye on those found contributing to China’s debt crisis. Since 2018, Beijing has stepped up its efforts to curb the unchecked growth of informal backchannels of borrowing – commonly known as hidden debt – but likely to its dismay, Ministry of Finance audits show that such debt has continued to rise. Singling out local authorities and state banks across seven provinces, the Ministry... https://www.scmp.com/economy/china-economy/article/3240666/china-debt-crisis-8-cases-financial-misconduct-flagged-beijing-names-and-shames-regions-banks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3240666/china-debt-crisis-8-cases-financial-misconduct-flagged-beijing-names-and-shames-regions-banks?utm_source=rss_feed Wed, 08 Nov 2023 02:00:14 +0000 Some of China’s most indebted provinces and municipalities appear to be facing their moment of reckoning. With governments in such regions having yet to devise clear plans to restructure or reduce debt, investment and economic growth are already sputtering. Tianjin, one of China’s four municipalities directly under the administration of the central government, saw its fixed-asset investment slump by more than 20 per cent in the first three quarters of 2023, year on year, bringing its gross... https://www.scmp.com/economy/china-economy/article/3239468/chinas-debt-saddled-regions-owe-far-more-they-can-pay-back-without-beijings-help?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3239468/chinas-debt-saddled-regions-owe-far-more-they-can-pay-back-without-beijings-help?utm_source=rss_feed Fri, 27 Oct 2023 22:30:14 +0000 Chinese developer Country Garden Holdings was deemed to be in default on a dollar bond for the first time ever, underscoring its fall into distress amid a broader property debt crisis that has shaken the world’s second-biggest economy. Country Garden’s failure to pay interest on the note within a grace period that ended last week “constitutes an event of default,” according to a notice to holders from trustee Citicorp International seen by Bloomberg News. That means the trustee must declare... https://www.scmp.com/business/banking-finance/article/3239122/country-garden-default-dollar-bond-declared-first-time-trustee-notice-bondholders?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3239122/country-garden-default-dollar-bond-declared-first-time-trustee-notice-bondholders?utm_source=rss_feed Wed, 25 Oct 2023 08:15:59 +0000 The cabinet’s finance work report to China’s top legislature over the weekend could signal that policymakers are racing to defuse widely watched risk points such as mounting debt in the world’s second-largest economy, analysts say as the woes of ailing developers and a local-level debt debacle continue to erode investor confidence. Chinese authorities will prioritise the tackling of key risks to defend their bottom line of no systemic risks, and this will include restructuring small financial... https://www.scmp.com/economy/china-economy/article/3238882/chinas-debt-crises-developers-local-governments-prompt-cabinet-call-curb-contagion?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3238882/chinas-debt-crises-developers-local-governments-prompt-cabinet-call-curb-contagion?utm_source=rss_feed Mon, 23 Oct 2023 12:00:23 +0000 Embattled property developer Country Garden issued a statement on Thursday morning rejecting talk, which it said was spread across several social media platforms, that its founder and chairman had both left China. The company said the talk has had “adverse effects”, adding that its founder, Yeung Kwok-keung or Yang Guoqiang in Mandarin, and his daughter Yang Huiyan, who is also the company’s chairman are still “working as normal” in China. Country Garden, once the largest Chinese home builder by... https://www.scmp.com/business/china-business/article/3238439/chinese-property-developer-country-garden-denies-talk-its-founder-and-chairman-have-left-china?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3238439/chinese-property-developer-country-garden-denies-talk-its-founder-and-chairman-have-left-china?utm_source=rss_feed Thu, 19 Oct 2023 03:02:52 +0000 Defaults among China’s private developers could exacerbate local-level government debt risks, analysts say amid growing concerns over contagion from the real estate sector’s fallout on the economy. Country Garden, China’s biggest developer, has been struggling to meet its debt repayments. The Guangdong-based real estate company warned last week that it would not be able to service all of its offshore borrowings. Failure to pay a US$15 million coupon payment on Tuesday by the Chinese developer... https://www.scmp.com/economy/china-economy/article/3238242/chinas-debt-ridden-local-governments-face-rising-pressure-repay-debt-and-fallout-possible-property?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3238242/chinas-debt-ridden-local-governments-face-rising-pressure-repay-debt-and-fallout-possible-property?utm_source=rss_feed Tue, 17 Oct 2023 14:00:10 +0000