COVID-19: China frequently defaults on corporate bonds: Tsinghua Unigroup / defaults
-Financial authorities, vigilance: strengthen-
Default of Chinese corporate bonds:
A record high of 167 billion yuan in 2019.
20 years will exceed that.
The government has announced financial support as an economic measure for the new coronavirus.
However, cash flow support shrank as the economy recovered.
A series of companies are in financial difficulty.
Tsinghua Group defaults:
Tsinghua University-affiliated semiconductor giant Tsinghua Unigroup has defaulted.
The debt crisis extends to some prestigious state-owned enterprises.
Delayed redemption of corporate bonds:
In China, delays in redemption of corporate bonds do not mean that management will go bankrupt immediately.
Banks often provide working capital for some time.
State Council of China (Government):
On November 21, a meeting of financial experts was held to discuss the default of corporate bonds.
Xi Jinping Jintao aide-Ryutsuru (Liu-huh) Deputy Prime Minister was organized.
It was announced by the State Council on November 22nd.
Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXMZO66534850S0A121C2MM8000/
China’s corporate bond default, 40% state-owned
Financial difficulties are clear due to reduced support
The default of Chinese corporate bonds has recently spread to state-owned enterprises.
By the 20th of 2020, the payment of principal and interest will be delayed at 157 billion yuan (2.5 trillion yen).
The ratio of state-owned enterprises was more than 40%, which was much higher than in 2019.
Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXMZO66534950S0A121C2FF8000/
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China’s 2019 corporate bond defaults surge to about 12 times more than four years ago (China) | Business Brief-JETRO
https://www.jetro.go.jp/biznews/2020/01/7ea6316c7194c4fc.html