The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Default risk for Chinese companies has climbed to the highest in 13 years as Beijing seeks to rein in its post-crisis construction boom, according to Moody’s Analytics.
The research group’s measure of expected default frequency has risen above early-warning levels for about 25 percent of corporate borrowers. Moody’s Analytics, a separate entity from the ratings agency, uses the gauge to isolate companies and sectors that merit further investigation for financial distress.
“This share has been rising steadily for the past two years and now sits near the highs last seen in 2005,†Glenn Levine, a senior research analyst, wrote in a report.
China has seen a record pace of bond defaults this year.