Date
30 March 2017
Kaisa Group is among more than a hundred companies involved in corporate bond defaults this year. Photo: HKEJ
Kaisa Group is among more than a hundred companies involved in corporate bond defaults this year. Photo: HKEJ

More corporate bond defaults seen amid slowing China economy

Companies listed or incorporated in Hong Kong have been involved in six corporate bond defaults out of more than 100 this year, the most since 2009.

US companies were involved in 62 defaults, the Hong Kong Economic Journal reports, citing Standard & Poor’s Financial Services LLC.

It’s the first time defaults broke 100 since the 2008 global financial crisis.

The Hong Kong-incorporated or listed defaulters are Kaisa Group Holdings Ltd. (01638.HK), Renhe Commercial Holdings Co. Ltd. (01387.HK), Winsway Enterprises Holdings Ltd. (01733.HK) and Hidili Industry International Development Ltd. (01393.HK), China Shanshui Cement Group Ltd. (00691.HK) and Pacific Andes Food Ltd. (01174.HK) subsidiary China Fishery Group Ltd. 

The rating agency said it expects more defaults next year given the economic slowdown and overcapacity in China that could drive more companies to the brink.

Coal, metal refinery, photovoltaic and manufacturing have a high risk of default, it said.

[Chinese version中文版]

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