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Anonymous ID: c7d302 Aug. 1, 2019, 7:32 p.m. No.7303898   🗄️.is 🔗kun

China Bond Defaults Rebound Further in July + Asian Market snap, down most in a few weeks

 

China onshore corporate bond defaults reached at least 14.4 billion yuan ($2.1 billion) from 14 notes in July, the highest level since the March peak. This brings the total year-to-date defaults to 70.9 billion yuan from 89 bonds.

 

*Real estate sector with 10.2b yuan defaults tops year-to-date default list, followed by wholesale (9.5b yuan) and retail sales sector (7.9b yuan)

*Investment companies topped last month’s defaults, accounting for 45% of monthly total amount

*Jiangsu, Anhui provinces and Shanghai City were among the top 3 default locations.

 

*Small and medium-sized banks and non-bank financial institutions are cutting their holdings of lower-rated credit bonds after regulators assumed control of Baoshang Bank, according to Zhao Xue, head of fixed income at Shanxi Securities Co.

*Private-sector companies are still having hard time to obtain funding, as net financing of corporate bonds in private enterprises declined for three straight months, said Dong Dezhi, a fixed-income analyst at Guosen Securities

 

*Baoshang takeover is the first government seizure of a bank in two decades, which highlights the difficulty of cleaning up risky lending practices without triggering a loss of faith in banks

 

NOTE: Monthly defaulted amount may be revised based on the latest company announcements and bondholder’s conference resolution announcements.

 

https://www.bloomberg.com//news/articles/2019-08-01/china-bond-defaults-rebound-further-in-july-highest-since-march?srnd=markets-vp