Property News · January 19, 2021

China braces for another record year of bond defaults as cash-starved developers breach central bank’s red lines for borrowings


China’s corporate defaults may set a record this year when a trio of the central bank’s debt limits kick in this month, as they crimp the ability by borrowers to use loans to repay their outstanding debt.One in five of China’s biggest real estate developers including China Evergrande Group will be barred from borrowing any more money from banks according to the three red lines on debt drawn by the People’s Bank of China, the state-owned Economic Information Daily said.The red lines are…

Source : South China Morning Post
Read more…China braces for another record year of bond defaults as cash-starved developers breach central bank’s red lines for borrowings

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