Tsinghua Unigroup defaulted 1.3 billion yuan. Tsinghua Unigroup is technology and chip manufacturing company.
Brilliance Auto Group defaulted 6.5 billion yuan.
China Bond market turmoil is worsening because of State Owned Enterprises (SOEs) defaults is increasing.
As per Fitch, more China companies may default in upcoming year.
China companies has huge debt along with China has huge China government debt.
Recent RCEP (Regional Comprehensive Economic Partnership) formed by Asia Pacific countries will be boon for China in tough times. China has industries. But now they need markets to sell China products.
For this RCEP will be extremely useful for China. RCEP agreement is made by China for China benefit at right time.
Without RCEP, many China companies will drop into trouble in upcoming days.
On behalf of China manufacturing companies, a big round of applaud is worth for China President Xi Xinping for working to form RCEP.
RCEP to some extent will protect China companies.
We have highlighted this when Ant Group IPO is planned that China companies are sitting on huge debt.
Even though Covid-19 is originated from China, it will be gain for China in short term and pain in long term.