Why China’s Debt Defaults Look Set to Pick Up Again

Chinese companies are facing a reality check after years of ramping up debt. A de-leveraging campaign that President Xi Jinping began in 2016 to curb risks in the nation’s financial markets has led to a crackdown on unregulated lending — so-called shadow banking — and tighter rules on asset management. That made it harder for some to raise funds to repay existing debt, leading to a record number of bond defaults in 2018. There was a respite in the first half of 2019 as the government tried to