This week’s sell-off in Chinese high-yield dollar bonds is not a good measure of the stress facing Chinese developers. These bonds account for less than a tenth of developer debt. Their key creditors are domestic banks. Whether developers can refinance their debt therefore depends primarily not on conditions in the offshore market but on the political and regulatory constraints on bank lending.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services