Making history

Chinese corporate bond defaults on course to be highest ever

Citic Guoan Group, a subsidiary of state-owned conglomerate Citic, has defaulted on its Rmb3 billion bond. It is the biggest corporate bond default in China so far this year.
The risk of debt default looms over many Chinese firms.
The risk of debt default looms over many Chinese firms.

The level of corporate bond defaults in China is already the second highest on record, and it may be the highest ever by the end of this year. In the first four months of the year, the total value of corporate bond defaults in the country reached Rmb40 billion $5.9 billion, more than any previous full year except 2018, according to Chinese financial data provider, Wind.

The total value of Chinese corporate bond defaults for the whole of 2015, 2016 and 2017 was Rmb11.5 billion, Rmb39.4 billion and Rmb33.8 billion respectively.

Last year was a record with the default of 125 Chinese corporate bonds totaling...

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