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China Braces for $1.3 Trillion Maturity Wall as Defaults Surge

  • Shift toward shorter-dated onshore issuance accelerates
  • ‘Everyone wants to limit their exposure,’ ING’s Pang Says
Urban Retail Economy In Shanghai on the First Day Of Lunar New Year
Photographer: Qilai Shen/Bloomberg

Even by the standards of a record-breaking global credit binge, China’s corporate bond tab stands out: $1.3 trillion of domestic debt payable in the next 12 months.

That’s 30% more than what U.S. companies owe, 63% more than in all of Europe and enough money to buy Tesla Inc. twice over. What’s more, it’s all coming due at a time when Chinese borrowers are defaulting on onshore debt at an unprecedented pace.