Fear More Coal Defaults To Come

Southcn.com: 煤炭企业债违约潮恐来袭
Well-known economist Song Qinghui said, according to a Bloomberg survey, cash position lower than short-term debt, net loss of 200 listed companies in China, nearly half are commodity companies. With China's economic slowdown in recent years, the steel market has entered a downward cycle, the first half of 2015 trade deficit expanded across the board, iron and steel, coal and other industries are increasingly in crisis, overcapacity in the coal, steel and other industries will be more defaults Happening. It is foreseeable that breach coal enterprises will become commonplace wave of defaults, the coal industry, or being hit.

At the same time, he said, in the face of crisis-ridden coal industry big situation, even if investors do not hold corporate debt default will reveal all the details of the mentality of an institution, when faced with a wave of defaults hurt the coal industry to their own interests, should take up legal weapons to safeguard their legitimate interests. Coal Enterprise debt default should be given to the market, the government try not to interfere. SOE reform should go through a long process of establishing a new waste through more market-oriented means to be able to promote the reform and development of state-owned enterprises.

Former Sea King Cinda Investment Co. Chief Investment Officer Jin Shaohua also believes that steel companies and coal companies have ushered in corporate debt default time is closely related with the industry. Whether it is the steel industry or coal industry, due to overcapacity, falling prices, began to face the industry downturn of the great cycle, belong future capacity adjustment stage. He suggested that investors do not invest overcapacity of traditional industries, some companies have even central enterprises, the SASAC and other background, after development of the industry is a market behavior, corporate debt default, only through the market to solve. "In short, investors will need to be very careful before investing, on the one hand want to have a clearer understanding of the industry, the company should have a better understanding, in order to avoid similar losses suffered."

No comments:

Post a Comment