China's corporate debt defaults set to exceed 100 billion yuan

Omkar Godbole FXStreet Contributor

China’s corporate debt defaults are set to exceed 100 billion yuan for the third consecutive year, highlighting the coronavirus pandemic's negative impact on the economy.

According to Bloomberg, a surge in missed repayment obligations in the past two weeks drove onshore delinquencies to 104 billion yuan ($15.8 billion) so far this year. The offshore figure is $8.1 billion, 2.1 times the total in 2019.

More debt defaults may be seen in the near-term, as policymakers have reportedly vowed a “zero-tolerance” approach to violations in the bond market with the economy recovering from the coronavirus-induced slowdown.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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