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Business trends

China's corporate bond defaults tripled to $8.7bn in first half

Private sector hit hard by unregulated expansions and economic slowdown

A commercial complex operated by Yinyi in Shanghai: The property developer defaulted on 700 million yuan in interest payments for bonds issued in 2016. (Photo by Yusho Cho)

SHANGHAI -- Chinese corporate bond defaults are expected to hit record highs this year, a worrying trend for President Xi Jinping as he steers trade negotiations with the U.S.

Defaults on corporate bonds came in at slightly over 60 billion yuan ($8.7 billion) in the first six months of the year, at a pace almost comparable to fiscal 2018 when record defaults were logged.

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