Hong Kong’s proximity to China has long been its stronger selling point. But according to a new Fitch Ratings report, it is having a bad influence on the city’s banking sector.
As China Inc. deleverages, corporate bond defaults are on the rise this year. As of May 7, a total of 19 domestic corporate bonds have defaulted, compared to 49 bond defaults for all of 2017, according to Chinese data provider Wind.
Tianjin Tianhai Investment Co., Ltd., the investment vehicle of Chinese conglomerate HNA Group, best known for acquiring American company Ingram Micro in 2016, is acquiring the assets of e-commerce platform Dangdang for RMB7.5 billion (US$1.2 billion).
Financially-troubled Chinese conglomerate HNA Group Co Ltd. is looking to sell "some or all" of its US$6.3 billion stake in Hilton Worldwide Holdings Inc., according to a regulatory filing by Hilton. HNA, whose holdings range from airlines to hotels and financial services, is rapidly shedding assets to regain financial stability following a two-year, US$50 billion acquisition spree.
Chinese companies issuing bonds can no longer seek debt guarantees from local governments, or tell their investors that their bonds are backed by local governments, according to a new measures announced by China’s top State planning body. A notice detailing new rules for corporate bond issuance issued Monday by the National Development and Reform Commission stated: "It is strictly forbidden for reporting enterprises to require or accept the local government and its subordinate departments in various names to provide guarantee …
China’s HNA Group Co., Ltd., has told creditors that it is facing a liquidity shortage of at least RMB15 billion (US$2.4 billion) as it approaches a deadline to repay debts in the first quarter, according to media reports citing insiders.
Jia Yueting, the founder of troubled Chinese technology conglomerate LeEco, has been placed on a national list of defaulters after failing to comply with a court order related to unpaid debts, according to Chinese media reports.
There are many precedents of financial systems experiencing significant asset deterioration following sustained periods of above-trend credit growth.
The large capital inflows to emerging markets since 2008 have only led to a limited build-up in private debt, except in China. Even in the country where debt level has ballooned the most, there will not be a financial meltdown, says a research report by AXA Investment Managers.
Despite China’s growing debt level and concerns of a credit bubble burst, the world’s second largest economy has good odds to avoid a painful and unsuccessful de-leveraging process, says a research report by the Australia and New Zealand Banking Group Limited (ANZ). China’s high and still growing debt level is commonly seen as a major threat to its economic and financial stability. By our estimate, the total debt level rose to 236% of GDP by mid-2014, up almost 70 percentage …
China’s decision to launch local government debt swap is the right step in restructuring its massive local debt problem, and should be done on a much larger scale to help manage the country’s rising debt pile, says a research report by UBS AG. China’s Ministry of Finance (MoF) has given local governments permission to issue RMB1 trillion in special local bonds to replace part of the RMB1.86 trillion of debt that is maturing this year.
The author is ANZ greater China chief economist Liu Li-Gang China’s external debt surged from US$250 billion in 2008 to US$989 trillion at the end of 2013. However, the value represented just 11% of China’s GDP.
The ratio of total onshore and offshore debt to GDP in China has climbed to almost 250% from around 150% in 2009, writes Stephen Green, head of Greater China research at Standard Chartered, in a report.
The article’s authors are Yinqiu Lu and Tao Sun, who prepared the paper for the International Monetary Fund China’s Local Government Financing Platforms (LGFPs) are the backbone of local governments in promoting infrastructure development in China. As the principal financing agents for local governments, their crucial role in upgrading China’s infrastructure and promoting economic growth has been widely acknowledged.