{"id":444210,"date":"2026-05-12T01:45:34","date_gmt":"2026-05-12T01:45:34","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/444210\/"},"modified":"2026-05-12T01:45:34","modified_gmt":"2026-05-12T01:45:34","slug":"chinas-bond-market-faces-climbing-re-defaults-as-property-crisis-drags-on","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/444210\/","title":{"rendered":"China\u2019s bond market faces climbing re-defaults as property crisis drags on"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">China\u2019s bond market is facing rising re-defaults, driven by continued stress in the housing market, where years of government loosening and stimulus have yet to bring relief, according to a report by S&amp;P Global Ratings on Monday.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Since 2020, amid the crisis triggered by the default of China Evergrande Group \u2013 the world\u2019s most indebted property developer \u2013 about 40 per cent of restructured onshore bonds have suffered re-defaults, the report said. The turmoil was later compounded by Country Garden\u2019s default two years later and China Vanke\u2019s two years after that.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Despite stimulus, corporate loans have declined for three years, and household loans for six years. Government bond issuance has increased, but much of it has been used for debt swaps rather than new credit expansion.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cChina\u2019s housing market has seen three major downturns during this crisis. Two have led to a spike in re-defaults. The third one, currently in the making, may lead to the same in 2027,\u201d said Charles Chang, Greater China country lead for corporates at S&amp;P Global Ratings. \u201cThe ongoing crisis left in place systemic risk concerns that are being exacerbated by the Iran conflict.\u201d<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Lulu Shi, director of Asia-Pacific corporate ratings at Fitch Ratings, said debt extensions or exchanges may ease liquidity pressure but would not address the developers\u2019 fundamental challenges, including unsustainable financial structures, weak cash flows from subdued sales, and eroded confidence among homebuyers and financial institutions.<\/p>\n<p><img decoding=\"async\" alt=\"Over the past five years, China\u2019s property sector has recorded far more defaults and debt rollovers than any other industry. Photo: EPA\" data-qa=\"BaseImage-handleRenderImage-StyledImage\" class=\"e1gf69pb2 css-6ikqhs e445x7d0\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/05\/3ca392cf-d08b-4a0f-af06-fd7d694ace3a_2afe98d7.jpg\" title=\"Over the past five years, China\u2019s property sector has recorded far more defaults and debt rollovers than any other industry. Photo: EPA\"\/>Over the past five years, China\u2019s property sector has recorded far more defaults and debt rollovers than any other industry. Photo: EPA<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cWithout improvement in these fundamentals, a re-default is almost inevitable,\u201d Shi said. While such setbacks could further erode confidence, Shi said their impact on the homebuilding sector would likely be less severe than in earlier phases of the crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s bond market is facing rising re-defaults, driven by continued stress in the housing market, where years of&hellip;\n","protected":false},"author":2,"featured_media":444211,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[2102,72,114,90622,106720,130912,113,6075,61,60,82410,5698],"class_list":["post-444210","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing","tag-business","tag-china","tag-china-evergrande-group","tag-china-vanke","tag-country-garden","tag-economy","tag-guangdong","tag-ie","tag-ireland","tag-sp-global-ratings","tag-shanghai"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/444210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=444210"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/444210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/444211"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=444210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=444210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=444210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}