China Default-Risk Jumps to 2005 High, Says Moody's Analytics

Default risk for Chinese companies has climbed to the highest in 13 years as Beijing seeks to rein in its post-crisis construction boom, according to Moody’s Analytics.

The research group’s measure of expected default frequency has risen above early-warning levels for about 25 percent of corporate borrowers. Moody’s Analytics, a separate entity from the ratings agency, uses the gauge to isolate companies and sectors that merit further investigation for financial distress.