Property developers’ funding access will remain constrained in 2022. Offshore corporate bond defaults rose 28 per cent in first three quarters of 2021 and corporate bond defaults in China are expected to continue to rise in 2022 according to Moody’s Investors Service. Highly indebted property developers and enterprises owned by regional and local governments struggle to access new funding after a multi-year borrowing spree. Over the next four quarters, about 8.7 trillion yuan of onshore corporate debt is set to … Continue reading “Chinese Property Developers Caught in Negative Credit Loop Says Moody’s”
Hong Kong’s compulsory pension scheme MPF lost each member HK$10,800 (US$1,387) in the third quarter as China regulatory and Evergrande debt crisis converged in a perfect storm to crack markets lower.
Fitch Ratings following up from their Evergrande downgrade further warned a credit event could result in contagion and headwinds. Fitch cut the ratings of China Evergrande Group and two of its subsidiaries last Wednesday