Us-China trade war is one of the main drivers of the China’s Economy Slow down which is leading to increasing default by Chinese companies in 2020. Moody’s credit rating agency expects 40-50 new defaults in 2020, compared with 35 in 2019 and total value of defaults in 2020 to be below 200 billion yuan ($28 billion). China’s support would likely target companies engaged in social welfare projects, and not companies commercial in nature in line with their intention to reduce moral hazard” while at the same time ensuring any defaults “won’t undermine socioeconomic stability or trigger systemic risks. bloomberg
Category: Market News