Chinese companies suffer an intense cash crunch in offshore bond markets
Spreads on junk bonds are at their highest ever
GLOBAL INVESTORS are all too aware of the discount on the valuations of mainland firms as a result of Xi Jinping’s aim to lower leverage, house prices and inequality in China. Borrowers, for their part, must contend with a “Xi premium” on sorely needed capital. The Chinese leader’s policies may have led to a perilous credit crunch for many companies, especially property developers, in global markets.
This article appeared in the Finance & economics section of the print edition under the headline “Xi’s premium”
Finance & economics October 16th 2021
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- Germany’s workers are in the strongest position in 30 years
- The IMF decides to keep its boss
- Another upward force on American inflation: the housing boom
- A new study finds that dirty money remains easy to hide
- Chinese companies suffer an intense cash crunch in offshore bond markets
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