China’s steel credit maelstrom

Wednesday, 22 April 2015

Cross-posted from Investing in Chinese Stocks.

The PBOC slashed reserve requirements on Sunday and the reason for the cuts are evident in the following days. Kaisa defaulted on Monday and Tuesday, a state-owned subsidiary in Baoding, Hebei defaulted, Baoding Tianwei set to post China’s 3rd domestic bond default Tuesday:

China’s Baoding Tianwei Baobian Electric Co Ltd said it has not yet raised enough funds to make a bond interest rate payment due later on Tuesday.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.