China Credit Investors Brace for More Surprises From Hidden Debt
2 years, 10 months ago

China Credit Investors Brace for More Surprises From Hidden Debt

Bloomberg  

China Credit Investors Brace for More Surprises From Hidden Debt China Credit Tracker Share this article China’s credit markets are ushering in the new year with a fresh bout of stress, as scrutiny of hidden debt among the nation’s developers adds to turmoil in a sector facing mounting bills and limited fundraising options. Distress in the nation’s $870 billion offshore debt market remained elevated during a volatile January, Bloomberg’s China Credit Tracker shows. Concerns about unreported debt at Logan Group Co., China’s 20th-largest developer by sales last year, helped drag down the broader sector in recent days as bondholders question the liquidity of firms whose finances were long considered more sound than the likes of China Evergrande Group. Dive into the methodology behind Bloomberg’s China Credit Tracker Bondholders are learning to price in these risks: bad-debt manager China Huarong Asset Management Co. last year triggered an unprecedented crisis of confidence in the firm’s financial health after it failed to meet its results deadline.

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History of this topic

China unveils new ‘hidden debt’ scheme for local governments
1 month, 2 weeks ago

China unveils new ‘hidden debt’ scheme for local governments

Hindustan Times  

China has unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated a domestic downturn. Policymakers approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. Policymakers gathered in Beijing this past week approved a proposal to swap …

How China plans to cut hidden debt in massive shakeup
1 month, 2 weeks ago

How China plans to cut hidden debt in massive shakeup

New Indian Express  

SHANGAI: China has unveiled an ambitious plan to relieve public debt, aiming to turn local governments away from belt-tightening practices that have exacerbated a domestic downturn. Policymakers gathered in Beijing this past week approved a proposal to swap six trillion yuan of hidden debt belonging to local governments for official loans with more favourable terms. Much of local governments' hidden …

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited
1 month, 2 weeks ago

China’s 10-year bond yields drop amid $1.4 billion debt refinancing program, more stimulus awaited

Live Mint  

Yield for China's benchmark 10-year bonds have slid to their lowest in over a month after the government announced its 10 trillion yuan or $1.4 billion worth debt refinancing programme, Bloomberg reported. China's Debt Refinancing Programme — The Details The announcement was made after the National People’s Congress Standing Committee meeting on November 8, to “underwhelmed” reactions, as per the …

China approves $840B plan to refinance local government debt, boost slowing economy
1 month, 2 weeks ago

China approves $840B plan to refinance local government debt, boost slowing economy

Associated Press  

BEIJING — China on Friday approved a 6 trillion yuan plan to help local governments refinance their mountains of debt, in the latest push to rev up growth in the world’s second largest economy. Finance minister Lan Fo’an estimated that the hidden debt of local governments was 14.3 trillion yuan at the end of 2023. Lan said 2 trillion yuan …

Foreign holdings of Chinese bonds see net increase of $20b in July
4 months, 1 week ago

Foreign holdings of Chinese bonds see net increase of $20b in July

China Daily  

BEIJING - The net increase in foreign holdings of domestic bonds stood at $20 billion in July, soaring 1.4 times from the previous month, data from China's State Administration of Foreign Exchange showed Thursday. Foreign investors were still highly motivated to allocate RMB assets as cross-border capital flow improved in July, it said. China's foreign trade also continued to grow …

China's commercial banks resilient against risks: regulator
6 months, 2 weeks ago

China's commercial banks resilient against risks: regulator

China Daily  

A cashier at a bank in Taiyuan, Shanxi province counts renminbi notes. BEIJING - The balance of loan loss provisions of China's commercial banks came in at 6.9 trillion yuan at the end of the first quarter of this year, data from the country's financial regulator showed. The figure increased by 269.8 billion yuan from the end of the previous …

Milestone of CCB shows growing role of RMB
6 months, 3 weeks ago

Milestone of CCB shows growing role of RMB

China Daily  

China Construction Bank's London branch saw its cumulative clearing value top 100 trillion yuan by May 22, 2024. Their comments were made when China Construction Bank's London branch saw its cumulative clearing value top 100 trillion yuan by May 22, sustaining its position as the largest offshore RMB clearing bank outside Asia for the eighth consecutive year. According to Yang …

China seen continuing to cut US debt holdings
7 months, 1 week ago

China seen continuing to cut US debt holdings

China Daily  

A teller counts and arranges dollar notes at an Agricultural Bank of China branch in Qionghai, Hainan province. Bai Xue, vice-director of the research development department at Golden Credit Rating International, said China's holdings of US Treasury bonds have decreased by 42 percent compared to the peak level of $1.32 trillion in November 2013, and the decrease has sped up …

One-sided rating methodology lacks objectivity
8 months, 1 week ago

One-sided rating methodology lacks objectivity

China Daily  

A cashier counts RMB notes in a bank in Haian, Jiangsu province. The following are excerpts of the ministry's response: The indicator system of Fitch's sovereign credit rating methodology fails to reflect the positive role of China's fiscal policy in promoting economic growth and stabilizing the macro-leverage ratio. Such an arrangement is conducive to maintaining the intensity of necessary expenditures, …

China may pare its US debt holdings
9 months ago

China may pare its US debt holdings

China Daily  

A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. China may continue to reduce the share of US debt in its overall foreign exchange reserves amid its ramped-up efforts to diversify foreign asset portfolios, experts said on Wednesday. In the short term, factors like changes in monetary …

Chinese stocks slide as investors maintain caution after US inflation report
9 months, 1 week ago

Chinese stocks slide as investors maintain caution after US inflation report

Associated Press  

HONG KONG — China stocks were lower Wednesday after the overnight United States inflation report that signaled a diminished possibility of the Fed’s rate cut made investors cautious. Cathay Pacific Airways stock jumped 5.3% after it announced remarkable a 336% increase in operating profit in 2023, reaching 15.1 billion Hong Kong dollars and surpassing the previous record set in 2010. …

Everything China’s doing to rescue its battered stock market
9 months, 3 weeks ago

Everything China’s doing to rescue its battered stock market

Live Mint  

Chinese stocks have struggled for traction since returning from the Lunar New Year break, adding pressure on Beijing to provide more support and restore confidence in an economy grappling with a property slump and stubborn deflation. Regulators Check in With Listed Firms China’s regulatory officials visited listed companies in 20 provinces and municipalities from Jan. 29-Feb. 4, according to a …

Order to liquidate property giant China Evergrande is just one step in fixing China’s debt crisis
10 months, 3 weeks ago

Order to liquidate property giant China Evergrande is just one step in fixing China’s debt crisis

Associated Press  

BANGKOK — A Hong Kong court’s order to liquidate China Evergrande, the world’s most heavily indebted real estate developer, is only a tentative step toward resolving a debt crisis that is haunting financial markets and dragging on the Chinese economy. The order by the Hong Kong High Court also is not a remedy for the crisis of confidence haunting China’s …

China's top-selling to world's most indebted developer: What is Evergrande crisis
10 months, 3 weeks ago

China's top-selling to world's most indebted developer: What is Evergrande crisis

Hindustan Times  

A Hong Kong court ordered the liquidation of China Evergrande Group on Monday. Once China's top-selling developer, Evergrande's financial crisis became public in 2021 and since then it and a string of its peers have defaulted on their offshore debt obligations amid slowing home sales and fewer new avenues for fundraising, triggering fears of wider contagion that could spread to …

China weighs more stimulus, considers $139 billion of special bonds: Report
11 months, 1 week ago

China weighs more stimulus, considers $139 billion of special bonds: Report

Live Mint  

China is considering 1 trillion yuan of new debt issuance under a special sovereign bond plan - which will be only the fourth such sale in the past 26 years, according to a Bloomberg report. In that case, Beijing took the unusual step of raising 2023’s fiscal deficit ratio to about 3.8 per cent of gross domestic product — an …

China: Loan defaults hit record high, over 8.5 million people blacklisted
1 year ago

China: Loan defaults hit record high, over 8.5 million people blacklisted

Op India  

Amid China’s economy struggles to recover and unemployment remains high, the country’s indebted population is growing at a rapid rate, Voice Of America reported. VOA quoting a report from the Financial Times said that defaults by Chinese borrowers have surged to a record high since the pandemic, with authorities blacklisting 8.54 million people from economic activities ranging from using toll …

Chinese developer Evergrande risking liquidation if creditors veto its plan for handling huge debts
1 year ago

Chinese developer Evergrande risking liquidation if creditors veto its plan for handling huge debts

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A Hong Kong court will …

The $2 trillion interest bill that’s hitting governments
1 year, 1 month ago

The $2 trillion interest bill that’s hitting governments

Live Mint  

The world spent the past decade-plus taking advantage of rock-bottom interest rates to binge on debt. Governments are expected to spend a net $2 trillion paying interest on their debt this year as higher interest rates make borrowing more expensive, up more than 10% from 2022, according to an analysis of International Monetary Fund data by research consulting firm Teal …

From deflation to high debt burden: Here’s 5 things happening in Chinese economy
1 year, 1 month ago

From deflation to high debt burden: Here’s 5 things happening in Chinese economy

Live Mint  

China is facing the challenges of an economic deceleration and a substantial debt crisis within its real estate industry. “Combating persistent disinflation amid weak demand remains a challenge for Chinese policymakers,” Bruce Pang, chief economist for Greater China at Jones Lang LaSalle Ltd told Bloomberg. Better growth forecasts- Despite a slowdown, the future doesn't look very bleak for the Chinese …

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects
1 year, 1 month ago

Money Morass: Desperate China to refocus on stressed BRI borrowers, hanging projects

Firstpost  

China has pumped billions of dollars in grants and loans into developing countries over the last ten years. Called “One Belt, One Road” in Chinese, the Belt and Road Initiative started as a program for Chinese companies to build transportation, energy and other infrastructure overseas funded by Chinese development bank loans. China has granted about $1 trillion in loans to …

Don’t rule out a financial crisis in China
1 year, 2 months ago

Don’t rule out a financial crisis in China

Live Mint  

The world’s second largest economy has a deflating property bubble, local governments struggling to pay their debts and a banking system heavily exposed to both. The problem isn’t with the central government but local governments that borrowed heavily via off balance-sheet financing vehicles to fund urban development projects. Logan Wright, director of China research at Rhodium Group, a research firm, …

Recovery gains momentum, growth forecast raised
1 year, 2 months ago

Recovery gains momentum, growth forecast raised

China Daily  

A view of Beijing's CBD area. Goldman Sachs, JPMorgan Chase, Fidelity International, Deutsche Bank and some other foreign financial and banking institutions have raised their growth forecast for the Chinese economy, saying the Chinese stock market has bottomed out. Their optimistic view of China's economic prospects is mainly based on the continuous countercyclical adjustments, and the fact that the economy …

China stock investors say worst yet to come in property crisis
1 year, 2 months ago

China stock investors say worst yet to come in property crisis

Live Mint  

China’s property sector has yet to see the worst of the crisis that has cast a pall over the nation’s economy and helped drive an exodus of global funds from the world’s second-largest stock market. That’s the view from nine of 15 respondents in an informal Bloomberg News survey of analysts and money managers based in Hong Kong and mainland …

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns
1 year, 3 months ago

China's great wall of debt driving ‘unsustainable’ increase in borrowing, IMF warns

The Telegraph  

China is driving global debt back towards unsustainable levels amid an “unparalleled” borrowing binge by property developers and local governments, according to the International Monetary Fund. The IMF warned that a declining global debt share in 2022 risked being just a “pandemic blip” and said there was an urgent need to “restore fiscal sustainability”. “Global debt, which remained significantly higher …

What does China Evergrande’s debt restructuring entail?
1 year, 4 months ago

What does China Evergrande’s debt restructuring entail?

Live Mint  

China Evergrande Group has filed for protection from creditors in a US bankruptcy court as part of its debt restructuring process, amid rising concerns over China’s worsening property crisis and a weakening economy. Evergrande's debt restructuring In March, the Evergrande group announced an offshore debt restructuring, expecting it to facilitate a gradual resumption of operations and generation of cash flow. …

Can China’s Evergrande Group survive amid mounting debts, depleting resources?
1 year, 5 months ago

Can China’s Evergrande Group survive amid mounting debts, depleting resources?

Live Mint  

Concerns have been raised by creditors and analysts regarding the viability of China Evergrande Group's restructuring plan and operations. Adding to the unease, Evergrande's auditor commented that it could not provide an opinion on the reports due to material uncertainties surrounding the company's ability to sustain its operations as a going concern. Being burdened with one of the largest debt …

China Evergrande reports its debt rose to $340 billion in 2022. It plans meetings with creditors
1 year, 5 months ago

China Evergrande reports its debt rose to $340 billion in 2022. It plans meetings with creditors

Associated Press  

BEIJING — China Evergrande, the property developer whose woes helped bring about a slump in the country’s vitally important real estate market, has reported its debts rose further to about $340 billion by the end of last year. Regulators stepped in to supervise Evergrande’s debt restructuring, but apparently rejected a bailout to avoid sending the wrong message to companies about …

BRI a tool for development, not debt traps
1 year, 5 months ago

BRI a tool for development, not debt traps

China Daily  

The claims that the Belt and Road Initiative has been used as a tool to create debt traps for receptive countries are completely wrong, said Jin Keyu, associate professor of economics at the London School of Economics and Political Science. "The majority of debt in emerging markets is owed to Western institutions, multilateral institutions and financial institutions, including private creditors …

Asian stocks sink before US Congress votes on deal to avoid debt default
1 year, 6 months ago

Asian stocks sink before US Congress votes on deal to avoid debt default

Associated Press  

BEIJING — Asian stock markets sank Wednesday ahead of a vote by Congress on a deal to avert a government debt default, while a downturn in Chinese factory activity deepened, adding to signs global economic activity is weakening. Wall Street’s benchmark S&P 500 index edged up less than 0.1% on Tuesday as President Joe Biden and U.S. House Speaker Kevin …

China's property sector support fails to lure bond investors
2 years ago

China's property sector support fails to lure bond investors

Hindustan Times  

The battered bonds of Chinese property developers are showing tentative signs of a rebound after Beijing's measures to support the cash-strapped sector, but long-term investors are keeping away until they see signs of a deeper recovery. High-yield dollar-denominated bonds of companies such as Powerlong Real Estate Holdings and Country Garden Holdings have rallied since late November, cheered by the Chinese …

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market
2 years, 7 months ago

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market

Bloomberg  

Yields Top 22% as Covid-Zero Policy Stings China Dollar Bonds China Credit Tracker Share this article Fresh challenges are confronting Chinese borrowers in global debt markets after authorities doubled down on the nation’s Covid Zero policy. The focus remains on China’s offshore junk note market—dominated by property developers—after stress levels remained at their most elevated level in April, Bloomberg’s credit …

China's Evergrande baffled (and worried) after lenders claim $2 billion in cash
2 years, 9 months ago

China's Evergrande baffled (and worried) after lenders claim $2 billion in cash

Hindustan Times  

Chinese developer Evergrande said Tuesday it is investigating how lenders have laid claim to deposits valued at more than 13.4 billion yuan for its subsidiary, the latest black mark against the debt-ridden property giant. It announced Tuesday that one of its key units Evergrande Property Services Group had about $2.1 billion in cash that banks have laid claim to as …

Laos opens picturesque railway built on a mountain of Chinese debt
3 years ago

Laos opens picturesque railway built on a mountain of Chinese debt

Firstpost  

The line will connect the capital Vientiane with the southern Chinese city of Kunming, and there are grand plans for a high-speed rail network running to Singapore through Thailand and Malaysia Laos opened a new $6 billion rail link with China to much fanfare this month, but analysts warn the party could be short-lived as the government grapples with a …

Chinese real estate behemoth Evergrande, one other firm default on $1.6 billion in bonds
3 years ago

Chinese real estate behemoth Evergrande, one other firm default on $1.6 billion in bonds

Firstpost  

Following the development, Fitch Ratings agency has downgraded the Evergrande’s status to ‘restricted default rating’ Beijing, China: Two major Chinese property firms have defaulted on $1.6 billion worth of bonds to overseas creditors, Fitch Ratings agency said Thursday, as contagion spreads within the country’s debt-ridden real estate sector. The Chinese government sparked a crisis within the property industry when it …

China’s Evergrande defaults on dollar debt
3 years ago

China’s Evergrande defaults on dollar debt

Al Jazeera  

China Evergrande Group has officially been labeled a defaulter for the first time, the latest milestone in a months-long financial drama that paves the way for a massive restructuring of the world’s most indebted developer. ‘Reckless expansion’ “The downgrade may not have an overt or immediate impact on the Chinese process, but may subtly increase pressure on the company to …

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy
3 years, 1 month ago

Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy

CNN  

Hong Kong CNN Business — Troubles in China’s vast real estate sector could spill over to the global economy — including the United States, according to the Federal Reserve. The US central bank warned Monday that China’s ongoing property woes could elevate “financial stresses in China, could further strain global financial markets and negatively affect the United States.” In its …

Explained: Why China's property crash isn't a Lehman Brothers moment
3 years, 1 month ago

Explained: Why China's property crash isn't a Lehman Brothers moment

The Hindu  

Any story you tell about China, with its population of 1.4 billion and an economy that has more than doubled over the last decade, will always involve big numbers ― scary numbers. New home sales plummet by a third With property being a key driver of economic growth ― contributing about 29 per cent to China's gross domestic product ― …

China's economy slows as Beijing wrestles with debt
3 years, 1 month ago

China's economy slows as Beijing wrestles with debt

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Beijing “doesn’t want growth at …

As Evergrande fears linger, Beijing says it’s time for companies to pay their offshore debts
3 years, 1 month ago

As Evergrande fears linger, Beijing says it’s time for companies to pay their offshore debts

CNN  

Hong Kong CNN Business — Beijing is making one thing clear to the country’s embattled property developers: Pay your debts. The agencies said that they want companies to settle foreign debt to protect those firms’ reputations, as well as the “overall order of the market.” When Evergrande first warned last month that it could default, stocks in Hong Kong, New …

Evergrande shares plunge as Chinese property developer faces another debt deadline
3 years, 1 month ago

Evergrande shares plunge as Chinese property developer faces another debt deadline

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Chinese property giant Evergrande’s stock …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large
3 years, 2 months ago

Fear of China’s Evergrande Contagion Spreading to Global Commodity Markets Looms Large

News 18  

Buried under a huge $305 billion debt and almost on the brink of collapse, China’s real estate giant Evergrande Group defaulted twice on payments to offshore bondholders in September 2021. With large offshore investments in Chinese high-yield real estate bonds, financial markets in other countries now are exposed to substantial risk of contagion. The empire of Evergrande Group spans over …

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report
3 years, 2 months ago

China's debt trap: BRI countries owe China close to 385 billion USD in hidden debt, reveals report

Op India  

China has long been known for using its financial clout to further “debt-trap diplomacy”, a policy that encompasses saddling borrowing nations with excessive credit with the intention of extracting economic or political concessions from the debtor country when it finds it increasingly difficult to meet its debt repayment obligations. Now, a report published by AidData says China’s Belt and Road …

China's Great Wall of Debt: can it afford a default?
3 years, 2 months ago

China's Great Wall of Debt: can it afford a default?

ABC  

Lai Xiaomin's once-glittering career ended not with the popping of champagne corks and glowing testimonials, but at the hands of an executioner. Once known as the God of Wealth, Lai oversaw one of China's biggest and most important state-owned enterprises, Huarong Asset Management. Having just blinked on Huarong, global markets last week began betting Beijing once again would ride to …

Chinese banks try to calm fears about developer’s debts
3 years, 3 months ago

Chinese banks try to calm fears about developer’s debts

Associated Press  

BEIJING — Trying to dispel investor fears, some Chinese banks are disclosing what they are owed by a real estate developer that is struggling under $310 billion in debt and say they can cope with a potential default. Evergrande’s struggle to meet government-imposed debt limits has prompted fears a default might disrupt the Chinese economy or global financial markets. One …

As Evergrande stock sinks, Chinese conglomerate puts on a brave face but will Beijing bail it out?
3 years, 3 months ago

As Evergrande stock sinks, Chinese conglomerate puts on a brave face but will Beijing bail it out?

CNN  

Hong Kong CNN Business — Evergrande’s chairman promised his employees Tuesday that they will “walk out of the darkness” caused by the embattled Chinese conglomerate’s historic debt crisis. “I am convinced that through the joint efforts and hard work of leaders and employees at all levels, Evergrande will surely walk out of thedarkness as soon as possible,” he wrote.Xu added …

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming
3 years, 3 months ago

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming

CNN  

Hong Kong CNN Business — China’s dramatic steps to contain the coronavirus this summer have taken a toll on consumer confidence inthe country and are fueling concerns aboutthe strengthof the world’s second largest economy. Industrial production rose 5.3% in August from a year earlier, also slower than July and the weakest growth generated by China’s factoriesin a year. “The headwinds …

Evergrande, Chinese property giant, warns again that it could default on its enormous debts
3 years, 3 months ago

Evergrande, Chinese property giant, warns again that it could default on its enormous debts

CNN  

Hong Kong CNN Business — Evergrande is once again warning that it could default on its huge debts as it struggles to cut costs or find anyone to buy some ofits assets. But on Tuesday, Evergrande acknowledged its difficulty in finding buyers for its assets, saying that “it is uncertain as to whether the group will be able to consummate …

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