China Inc. to Suffer More Defaults in 2019 as Profits Stall
- Energy sector leads China’s record local bond default in 2018
- Private firms will face increasing liquidity pressure: S&P
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China’s stimulus policies may not be enough to jump-start profit growth at the nation’s corporations, raising the prospects of more debt defaults next year, analysts say.
The world’s second-largest economy is expected to expand 6.2 percent in 2019 from 6.6 percent this year. Profits among industrial companies grew the least in seven months in October. The data don’t bode well for corporations’ ability to service their debts in 2019 after a record year of local bond failures in 2018.