Risk Spreading With 2.34 Trillion Debt Maturing in 2H

Downgrades are spreading into real estate, electronics, food and beverage, plus local government investment arms.

Caijing: 中国企业近2.34万亿债券即将到期,信用风险正在蔓延!
However, the credit risk has begun to spread from the traditional industries with excess to the general industry . Chengxin International issued a research report that the May 2016 bond market has the main level adjustment 53, wherein the level increases 32 times, down 21 times, outlook changed to negative 9 times, additional debt level down 24 times, downgrade the data were significantly higher than the Past. It relates to the subject issuer downgrade a total of 18, two of which appear material breach or risk payment announcement published. From the type of business, the level of state-owned enterprises and the central rate of increasing the number down, continue to increase compared with April 5; From the industry distribution, downgrade body continues the tradition of coal, iron and steel overcapacity leading upstream business, but in May downngrades appeared in the electronic products manufacturing, real estate, local government investment, food and beverage industries and spread across intermediate industries, reflecting credit risk continues to deepen, it is also continuously exposed to a range of other industries.
Below is the list of defaulted bonds to date, along with the maturing debt totals for 2016, broken down by month.

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