Since then, the company claimed that it had no cash to pay the principal and interest of its credit bonds, and its rating was downgraded to A+.
On Nov. 20, the Shenyang Intermediate People’s Court ruled that Brilliance’s creditors should reorganize the company—meaning Brilliance had gone bankrupt. But Brilliance’s joint-ventures with European automakers BMW and Renault were not impacted.
Chinese economists have previously pointed to the problem of unreliable ratings by Chinese bond rating agencies.
Only six such agencies have formal licenses in China, according to state-run media Jing Wei.
T post. sum ting wong.
It probably caused by all the lockdowns they had this year as well as the various sanctions and tariffs against China.
Trump has them on the ropes and if the Big Steal goes through, they will own us.
My guess is that financial advisors for some big US pension funds pocketed some hefty commissions for downloading these turkeys into the funds.
American workers get scr#wed again!
For China, and their SOEs, $24b is mouse nuts.
You mean Chinese bonds are not reliable?
This is Joe’s “shocked face.”
No. Different levels of government but not different level governments. There is only one government in a Communist organized state. The smaller divisions are just that, divisions of the overall government.
China and her people are enemies of our nation and of Western Civilization. No student and spousal visas should even be allowed.
This is many, many, many times worse. All this corporate paper is essentially worthless. The much touted Chinese economy has been on the edge of collapsing for years. They were propped up by the massive trade imbalance. Remove that and it is only a matter of time before a major Chinese financial meltdown. Trump has them by the balls. That is why they were heavily involved in the election steal. Among other reasons.