That made it harder for some to raise funds to repay existing debt, leading to a record number of bond defaults in 2018 and 2019 as economic growth slowed.
A de-leveraging campaign that President Xi Jinping began in 2016 to curb risks in financial markets has led to a crackdown on unregulated lending — so-called shadow banking — and tighter rules on asset management.
Chinese companies are facing a reality check after years of ramping up debt.
The coronavirus pandemic has only worsened the outl
Source: washington post
Summary automatically generated by NewSUM A.I. from the following sources:
- Why China’s Debt-Loaded Companies Face a Reality Check (washington post)
- Why China’s Debt Defaults Are Picking Up Yet Again (washington post)