UNITED STATES (VOP TODAY NEWS) — Analysts from the Bloomberg agency predicted the largest default for participants in the Chinese bond market.
According to them, in the first four months of this year, local companies defaulted on domestic bonds worth 39.2 billion yuan ($ 5.8 billion). This is more than three times the figure for the same period last year.
In addition, the debt growth process is developing three times faster than in 2016, the first half of which was also marked by a high risk of default.
Analysts are sure: if the authorities do not take any measures, in 2019 a new maximum will be fixed by default for Chinese securities.
Experts suggest that such results are associated with a reduction in company financing.
The authorities are trying to influence the situation by putting pressure on the banking sector and encouraging financial institutions to expand lending to small and medium businesses, but at the same time they are campaigning against shadow banking, where the regulator’s influence on lending is not so strong, the agency concludes.
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