https://www.bloomberg.com/news/arti...d-structure-sparks-market-angst-after-default https://www.caixinglobal.com/2019-0...with-800-million-cross-default-101406441.html https://www.mingtiandi.com/real-est...seized-in-sg-us-china-after-hna-loan-default/ https://www.caixinglobal.com/2019-0...ond-defaults-continues-in-2019-101388555.html https://www.undercurrentnews.com/20...ocessor-defaults-on-additional-125m-of-debts/ https://www.asiatimes.com/2019/03/article/wave-of-debt-washes-over-corporate-china/
Even the State Media is airing out the truth!!!! And they are biased as fuck generally https://www.scmp.com/economy/china-...omy-faces-threat-obscure-financial-tool-could When one company defaults on a repayment, it also reneges on the debt it has guaranteed for other companies, setting off a chain reaction of corporate defaults, and subsequently aggravating market risks. Moreover, when the cross default clause is triggered, it also puts short-term repayment pressure on the borrower, meaning it has less capacity to refinance its debt. Thus, cross default clauses can create a domino effect in which an insolvent borrower may be in default on loans from multiple contracts, if all lenders include cross defaults in their loan documents. While the number of cross defaults in China is still relatively low, it is growing rapidly. Total bond issuance containing cross default covenants that were due in 2016 stood at 3 billion yuan (US$446 million), before rising to 119 billion yuan (US$17.7 billion) in 2017 and 539 billion yuan (US$80.2 billion) in 2018, according to Shanghai-based information provider, Wind Financial.
Such an expert on China you are, although I'll grant you with Alibaba now controlling the paper, the pro Beijing bias is apparent when it comes to sensible political issues (I seldom read it, but last time I checked there was an editorial about Huawei and the US which read like it was written in Beijing - HKers are getting screwed big time when it comes to independence from the Mainland, and not only from the Scmp) : https://en.wikipedia.org/wiki/South_China_Morning_Post Besides you could also quote the following in that article : "Overall, China’s scale of bond defaults remain low, but the pace of growth is developing rapidly. This year so far, there have already been 18 new credit defaulting entities, exceeding the whole of last year, according to Jiang. Of the new default entities, 17 were private enterprises. (...) Despite high corporate debt levels, defaults remained at a low 0.4 per cent of outstanding bonds at the end of July 2018 because state-owned enterprises enjoy implicit guarantees from the government" Imo you are way more biaised than the Scmp and understand more about Power Point than China. On another thread UK and Europe, here China, according to you all about to collapse, you sound like that dude Littlebicycle 8-9 years ago.
Interesting article, loved the last sentence: ..."However, in a report this month, the Organisation for Economic Cooperation and Development warned that China should remove these guarantees and let companies fail, if it is to make the economy more efficient." Sure they will , just like in did in 2008 and let all those banks and insurance companies fail.
I guess I read a lot... Try it sometime, you might see economic reality =) , maybe you will be making good money with trading as well! I do have an addiction to reading/learning tho, and allergic to frauds and liars ? Hence my fascination with China's Economy, my life has never been the same since I dove down the rabbit hole