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.
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