Analysts expect China's recent wave of corporate bond defaults to continue

Beijing

CHINA'S corporate bond defaults reached a record high last year, with the trend set to continue as the central bank seeks to clean up the financial sector, analysts say.

In the first 11 months of 2019, Chinese privately-owned enterprises' onshore bond default rate hit a record high of 4.5 per cent. The default rate among state-owned enterprises, which are less vulnerable to a credit crunch, was about 0.2 per cent.