The year 2018 set a record for China’s corporate bond defaults. Based on current data, defaults in 2019 will break last year’s record, as a U.S.-China trade war is taking a toll on China’s declining economy.
Four Bond Defaults in One Day
Four companies defaulted within one day on July 15, according to ShangHai Clearing House. They are China City Construction Holding Group Co., Ltd, defaulting on 2015 first-phase medium-term notes; Jinggong Group Co., Ltd., on 2018 third-phase ultra-short-term bond funds; Shandong SNTON Group Co., Ltd., on 2017 first phase medium-term notes, Kangde Xin Composite Material Group Co., Ltd., and on 2017 second-phase medium-term notes, respectively.The four defaulted bonds add up to 4.3 billion yuan ($625 million).