China’s Private Bond Defaults Climb to Record $4.4 Billion
- More defaults among private bonds versus public: Chengxin
- Investors seeking higher risk premium on private bonds: Chen
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More Chinese companies are defaulting on private bonds this year as the slowing economy weighs on weaker companies and firms seek to repay publicly traded debt first.
The nation’s issuers have missed repayments on a record 31.8 billion yuan ($4.4 billion) of private bonds this year through August, compared with 26.7 billion yuan for all of 2017 and 2018 combined, according to data by China Chengxin International Credit Rating Co., one of China’s biggest rating firms.