China likely to see more bond de­faults

New Straits Times - - Business -

BEI­JING: More cor­po­rate de­faults in China wouldn’t be a sur­prise as debt lev­els are un­sus­tain­able and the econ­omy is slow­ing, says James McCor­mack, global head of sov­er­eign rat­ings at Fitch Rat­ings. The cor­po­rate debt prob­lem was get­ting big­ger in the medium-term, said McCor­mack yes­ter­day. Short­ert­erm is­sues around wealth man­age­ment prod­ucts and lever­age in­side the fi­nan­cial sys­tem were wor­ry­ing, and a co­or­di­nated reg­u­la­tory re­sponse would be “good news”, he said.

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