
Private Debt Defaults Accelerate; China’s Bond Mess
The Credit Edge by Bloomberg Intelligence
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China's Economy: Deceleration and Debt Crisis
This chapter explores the current state of China's economy, including deceleration, deepening property crisis, downbeat consumers, struggling exports, and high unemployment rate. It discusses local government financing vehicles (LG FVs) and special purpose vehicles (SPVs) used to fund infrastructure projects, as well as the estimated debt of China's local government financing entities (LGFEs). Additionally, it analyzes the potential consequences of a default by one of these government financing vehicles and the role of state-owned banks in preventing private debt defaults in China.
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