China Bond Defaults Exceed All of 2015, 57 pc of AAA Bonds Are Junk

Through May 24m 16 companies have defaulted on 30 bonds. The bonds are worth more than 20 billion yuan and nearly 18 billion of the total hasn't been repaid.

Wind: 前5月债券违约规模超去年全年!这个锅该评级机构来背?

Defaults are accelerating, as evidenced by this chart:

The list of all the defaulted bonds:

Ratings downgrades are also accelerating:

Bloomberg: Look Closer: 57% of China AAA Bond Issuers Have Junk-Like Risks
About 57 percent of bond issuers listed in China and whose securities are rated AAA in the nation may have default risk consistent with what Bloomberg’s quantitative, independent default-risk model deems a below-investment-grade company. The model tracks metrics including share performance, liabilities and cash flow. It doesn’t take into consideration guarantees or make assumptions about government support, regulations or future earnings.

...Investors are pushing for more accurate ratings after at least 10 companies defaulted so far this year, already exceeding the tally for 2015. Dagong Global Credit Rating Co. didn’t cut its grade for China Railway Materials Co. from a second-ranking AA+ until three days after the company suspended trading on its 16.8 billion yuan ($2.6 billion) of notes on April 11 to study debt repayment issues. Bonds rated AA- or lower are considered as Junk in China’s onshore market.

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