The value of bond defaults in China in 2022 has already more than doubled the full-year total from last year, as the accelerating debt crisis in the country’s $2.7 trillion property market spills over into other areas of the economy, reports the South China Morning Post.
Defaults by Chinese issuers have exceeded $20 billion so far this year, compared with about $9 billion for all of last year, with property developers accounting for most of the defaults, said Augus To, deputy head of research at ICBC International.
“The defaults may be peaking this year,” he said. “Uncertainties will linger on in the remainder of the year or even next year. Improvement may come, but will take a longer time to materialize.”