The number of defaults on corporate bonds rose to a record high last year. Against the background of low economic growth, this may indicate new problems in the country's economy. According to Fitch, 45 Chinese companies reported a default on 117 bond issues worth more than $16 billion. Agency analysts say: 86.7% of companies that have declared a default are non-state. The increase in the number of defaults also reduced interest in risky decisions among investors, Fitch experts say. Defaults affected companies in the construction and engineering sectors, as well as companies in the energy sector, diversified and industrial enterprises. Their number accounted for half of all defaults. The number of defaults in China can be a good signal for the country. The increase in the number of problem bonds reflects the maturity of the Chinese economy. The Financial Times also admits the possibility of increased number of defaults this year.
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