Chinese Builder CIFI Holdings Halts Foreign Debt Payments

Despite foreign debt default, property developers turn to domestic capital raising to survive under tough policies

A man works at a construction site of a residential skyscraper in Shanghai, China, on Nov. 29, 2016. Johannes Eisele/AFP via Getty Images

News Analysis

Chinese enterprise CIFI Holdings (00884.HK) recently announced that it had suspended all foreign debt payments due to deteriorating cash flow but would repay domestic debts to maintain domestic financing. This may indicate that Chinese firms are now cutting off their international capital ties amid tightened policies and turning to domestic investment to survive.