businessUpdated: Jun 24, 2020 07:08 ISTSurging dollar bond defaults by Chinese companies highlight the increasing pressure the nation’s firms are facing as the economy slows. The divergence between the yuan and dollar bond pace of defaults shows how hard it is for Chinese firms to borrow cheaply or get away with debt compromises in a global market. A good example of how Chinese firms face tougher scrutiny overseas is Hilong Holding Ltd., an oil equipment and services company. The firm declared a default on a dollar bond Monday after failing to garner investor support for a debt swap despite extending the deadline for the offer three times. The faster pace of defaults offshore shows Chinese firms are unlikely to prioritize offshore debt repayment, according to Chung from Moody’s.

Source: Hindustan Times June 24, 2020 01:38 UTC