China May 2017 Analysis

Economic Analysis - Credit Risks To Increase As Regulatory Tightening Continues - 15 MAY 2017

Any policy missteps by the Chinese government in curbing leverage could lead to continued onshore bond sell-off and potentially spill over to the US dollar bond market, considering the dominance of Chinese investors in the offshore market. Additionally, we expect the number of defaults to rise in the coming months due to increasing refinancing needs coupled with rising borrowing costs and...