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i can feel echos of 1997......


socrates469bc

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..... beckoning again.

 

and this time, this economic winter will last a longer time with tiongland developers being the largest bond defaulters.

 

.......

 

In the region, China “is the elephant in the room,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA. China accounts for about one-quarter of the world’s total corporate debt, and among stressed debtors, it’s an even bigger player: a report last year suggested some 40% of the world’s riskiest debt was owed by Chinese corporates.

 

Chinese builders, including China Evergrande and Kaisa Group Holdings Ltd, are the biggest junk bond issuers in Asia, accounting for about 48% of that market. Now the coronavirus outbreak’s brought sales to a halt, drying up the short-term financing the industry relies on. In March, Herrero invoked another pachyderm, calling the sector “a hibernating grey rhino waking up to global risk aversion.”

 

https://www.theedgemarkets.com/article/echoes-1997-asia-financial-crisis-haunt-regions-debt-market

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