Trend of SOE bond defaults set to continue, investors jittery about default risks among local governments for first time in years, analysts say
Trend of SOE bond defaults set to continue, investors jittery about default risks among local governments for first time in years, analysts say

Trend of SOE bond defaults set to continue, investors jittery about default risks among local governments for first time in years, analysts say

 

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China’s local governments and state-owned enterprises are struggling to refinance their debt as investors shun them over a lack of support from Beijing, with bigger defaults likely to take place, analysts say.

Among Chinese state-owned enterprises, the value of defaults has more than tripled over the past three years and the number of nonpayments more than doubled over the same period, a trend that is set to continue, according to a report from Standard & Poors Global Ratings.

“A trend of bigger individual defaults has more potential to drive investor losses,” said . . .

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