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Chinese companies stung as dollar fundraising costs soar

Rampant defaults in country spur interest rate hikes on greenback debts

A bank clerk counts U.S. dollar banknotes on bundles of 100 Chinese yuan banknotes at a branch of a bank in Huaibei, Anhui province.   © Reuters

SHANGHAI -- When it comes to borrowing in dollars, creditors appear to view debt-soaked Chinese enterprises as subprime recipients.

The average interest rate stands at 7.8% for offshore corporate dollar bonds floated over the past three months, up 2.2 percentage points from a year earlier. The average period to maturity has shrunk as well.

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