In China, there is a wave of non-fulfillment of the corporate debt, which will lead the country to a huge financial crisis, writes the PIA News. The media reminds that even before the pandemic between the IMF and the World Bank, the President said that the “scenario of China’s debt” could submerge the world. In Asia, a new threat is emerging, which in all probability will again affect the whole world.
In the first half of the year, 25 Chinese companies began bonding worth nearly $ 10 billion. This is the highest indicator in the history of the market with 121 percent of BBH at KHP. At the same time, more than half of the defaults – $ 5.6 billion – are from government organizations. This is how the Fiting International Agency evaluates it.
According to the calculations of the company Shanghai DZN, whose analysts report a wide debt market, including valuable books without international payments, 18 million in total.
State-owned companies are already in a serious debt crisis
In 2019, this sector represents only 10 percent of the arrears, in 2020 it is already in the amount of 40%, and in the first two quarters of this year – half.
For decades, Chinese state-owned companies have received guarantees for debts from the government and municipal authorities, analysts say.
“The big state-owned companies are generating debts with the full confidence that they will not have problems. But life has shown that this is far from the case,” he added.
The biggest economy is a surprise with an unexpected exit, but the forecasts are high.
The world considers the world economic economy to be more uncertain and warns that during the second half of the year it will be celebrated.
The rapid exit from the blocs, the result of the pandemic helped Pekin to become the largest recipient of foreign news. Ha papvi time novata ictopiyata Kitay (in ĸombinatsiya c Xonĸong) octavi zad cebe ci CASHT in low bpoy ĸompanii (124 cpeshty 121) in cpicaĸa na Fortune 500.
China will become the largest economy in the world in 2 years, more than expected, confident in the economy.
The current side of the coin is the huge corporate debt. The International Monetary Fund warns of this danger in 2019. Analysts say that if Lekin takes the lead, global debt will disappear, which will lead to a collapse compared to 2008.
Conventional banking, which has reached alarming proportions, has made it possible to borrow money. As a result of this, the Chinese credit market has been undergoing transformation since 2012: the banks in the shadows have begun to dominate, especially in the future. These credit mechanisms offer high returns to customers, but with much larger risks.
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B China so-called. The estimate is estimated at 13 trillion. As the MBF and the World Bank predict, the probability of an Asian crisis is very close. Over the next 2 years, Chinese companies will have to pay off or refinance 2.14 trillion dollars of debt. This is 60% more than in the previous period.
“Investors traditionally look at bonds issued by state-owned companies, which are less likely to be subject to state-owned bonds. The delays in the payments cause a sale”, Bloomberg writes.
Local Chinese companies, which are mostly state-owned, take out permanent loans, which will tighten the banking system. The Chinese National Bank recommends limiting investments in financial products with AA-rated trading on a national scale.
Today, the national creditor market in China is worth 17 trillion dollars.