Onshore liquidity crunch to undermine China credit

China’s worsening borrowing conditions could prompt a rise in bond supply and corporate defaults, threatening the credit profiles of local companies, says Morgan Stanley.
January 30, 2014

The market for Chinese credits is likely to remain under pressure from rising bond supply and risk of corporate defaults. These are the side effects from the cyclical deterioration in the mainland’s borrowing conditions that result from a more constrained financial sector.

¬ Haymarket Media Limited. All rights reserved.

Sign in to read on!

Registered users get 2 free articles in 30 days.

Subscribers have full unlimited access to FinanceAsia.

Not signed up? New users get 2 free articles per month, plus a 7-day unlimited free trial.

Questions?
See here for more information on licences and prices, or contact [email protected].

Related Articles

Cautious outlook on Asia credit

Asia credit is likely to experience more headwinds for the rest of the year, boosting appetite for quality names, says Morgan Stanley.
March 19, 2014

Apac markets on edge amid bond market turmoil

Japan's borrowing costs hit a 30-year high after the US Fed chair used more hawkish rhetoric; oil prices are up again as hostilities resume in the Middle East.
September 01, 2026