S&P Analysts Predict Potential 'Third Wave' of China Bond Defaults Due to High Financing Costs and State Policies

Tuesday, 23 April 2024, 23:00

S&P analysts have raised concerns about a possible third wave of bond defaults in China, driven by a combination of high financing costs, sluggish economic growth, and stricter government regulations. The warning focuses on the vulnerability of local government financing vehicles in this scenario, with potential significant implications for China's bond market.
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S&P Analysts Predict Potential 'Third Wave' of China Bond Defaults Due to High Financing Costs and State Policies

S&P Analysts' Warning on China Bond Defaults

S&P analysts have issued a warning regarding a potential 'third wave' of corporate bond defaults in China, citing factors such as high financing costs, slow economic growth, and tightened state policies. The analysts have highlighted local government financing vehicles as particularly at risk in this challenging environment.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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