S&P Global Ratings expect defaults in China to rise in 2018 and predicts that 2018 may see the first LGFV default in the bond market.
The Chinese M&A and private placement market has seen strong growth over the past decade. In 2017 the total number of completed transactions for targets based in China was up 48% on 2007.
S&P Global Market Intelligence research shows smart money signals based on a granular understanding of institutional ownership can enhance the performance of long-only and long-short strategies.
The region's key capital markets have shown impressive expansion since the 2007 crisis. While threats remain, they are outweighed by a range of opportunities, S&P Global Market Intelligence experts say.
Interest rates, FX, politics, the property market and debt in China could all hit market prospects in the second half of 2017, S&P Global Ratings' Terry Chan says.
The Chinese local government financing vehicle could have been more proactive in managing its bond's financial covenants, S&P Global Ratings analysts say.
The yield gap between speculative- and investment-grade credits is narrowing in the offshore US dollar bond market for Chinese issuers, says S&P Global Ratings.