- Credit Crisis Unfolds In China As Steelmaker Default Sparks Contagion Fears
by Tyler Durden, https://www.zerohedge.com/
China’s manufacturing PMI slumped deeper into contraction on Thursday — as economic growth in the country fell to its weakest pace in three decades. The economic slowdown, coupled with massive corporate leverage, has created a ticking debt time bomb, which could explode in the next global recession.
The unraveling and coming debt crisis in China will take a series of corporate debt defaults to spook investors, and perhaps, the first series of defaults has already started. The latest causality is Shandong-based steelmaker Xiwang Group Co., who defaulted on a $142 million bond last week, has sparked contagion fear with other companies in the same region, reported Bloomberg.