China likely to see more bond defaults

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.