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Analysts Expect Record-Breaking Year for Corporate Bond Defaults

Yan Yan, chairman of China Chenxin Asia Pacific Ratings Co., said that “2018 will be another big year for bond defaults.” Photo: VCG
Yan Yan, chairman of China Chenxin Asia Pacific Ratings Co., said that “2018 will be another big year for bond defaults.” Photo: VCG

The number of Chinese corporate bond defaults will reach a new high this year, analysts said, as a tighter supply of credit and rising borrowing costs resulting from the government’s national financial deleveraging campaign squeeze Chinese enterprises that have weak funding bases.

“2018 will be another big year for bond defaults,” said Yan Yan, chairman of China Chenxin Asia Pacific Ratings Co., at a midyear credit outlook conference his firm co-hosted with Moody’s Investors Service in Shanghai on Thursday.

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