Debt Alarm Pulled, Risk Spreads Beyond Commodity Producers

Earlier this week I posted an article from Wind in Risk Spreading With 2.34 Trillion Debt Maturing in 2H. Wind is back with more on the topic today.

Netease: 违约风险警报拉响 “黑天鹅”向中游行业飞去!

The three main debt risks are steel, and non-ferrous metals (blue, red and yellow in the chart below).
Wind Information statistics show that the second half of 2016, due scale iron and steel, coal, nonferrous metals, these three serious excess capacity industries, maturing debt of nearly 700 billion yuan, a record high, increasing 30% over last year, will begin in August to reach peak maturity, there will be approximately 90 billion yuan bonds due in August, another 90.2 billion and 9.3.5 billion due in October and November respectively.
More than 40 percent of this year's maturing debt in these industries will hit in the four months from August to November.

The new focus of concern is the transportation industry, which is downstream from commodities. The tranportation sector has 650 billion yuan in debt due this year, up 30 percent from last year.
According to incomplete statistics, in 2016 the maturing transport industry debt reached 656.7 billion, far more than 456.6 billion yuan in 2015, from August to September, the industry will usher in the peak debt maturity , due for repayment more than 80 billion yuan. In 2016, the building materials industry 149.9 billion yuan bonds will mature; food and beverage industry amounted to 96.3 billion yuan, far more than in 74.4 billion in 2015; real estate sector amounted to 74.5 billion yuan, far more than 39.6 billion yuan in 2015.

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