What Default? China Growth Keeps Lid on Bond Failure Rate: Chart

Only 0.33 percent of debt issuers in China have reneged on domestic bond payments so far this year, a sharp drop from 2016, as the economic growth momentum underpinned a revival in profits at overcapacity industries, according to China Lianhe Credit Rating Co. Private-sector companies dominated bond defaults in the past three years, with an average failure rate of 3.5 percent. Defaults are unlikely to rise significantly in 2018 because of the good macroeconomic environment and limited bond maturities, Lianhe said in a report this month.

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