Bloomberg predicts that China will face the biggest default in its history in 2019

Bloomberg conducted a study that showed that companies in China since the beginning of 2019 defaulted on domestic bonds for a total of 39.2 billion yuan. The indicator increased 3.4 times compared to the same period a year earlier. These data allowed the agency to come to the conclusion that this year China could be threatened with the largest default in its history of 13 trillion dollars. Experts note that compared to 2016, when the risks of default were concentrated in the first half of the year, the number of defaults announced by companies this year grows 3 times faster, which could lead to new default highs in the domestic Chinese bond market. The main reasons for the current situation are the further reduction of the PRC banking sector and the measures taken by the state to reduce the shadow banking system.

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