DEBT: Addiction to short-term debt
Frustrated by their inability to access a restricted corporate bond market, many Chinese companies are hooked on short-term debt and black market funding to finance long-term commitments. But short-term money can dry up fast, exposing borrowers to a cash crunch. With China's economy slowing down, a wave of catastrophic debt defaults could be just around the corner, writes Naomi Rovnick.
Unlock this article.
The content you are trying to view is exclusive to our subscribers.
To unlock this article:
- ✔ 4,000 annual insights
- ✔ 700+ notes and long-form analyses
- ✔ 4 capital markets databases
- ✔ Daily newsletters across markets and asset classes
- ✔ 2 weekly podcasts