SHANGHAI/BEIJING -- Defaults on Chinese corporate debt are swelling, and are now extending to foreign-currency-denominated bonds, bought mainly by overseas investors.
Companies have defaulted on at least 20.7 billion yuan ($3.19 billion) in yuan bonds and $350 million in dollar debt in the six months through June, marking a 40% increase compared to the same period last year. The government's deleveraging campaign and a crackdown on shadow banking have left more businesses strapped for cash.
