Rising levels of distress and debt restructuring in commodities, real estate and gaming amid China’s slowdown
We have published our latest bespoke research in conjunction with Houlihan Lokey, taking a closer look at corporate distress and debt restructuring trends in this exclusive thought leadership newsletter, “Distress and deceleration in China”.
China’s Shanghai Composite Index dropped 7% on the first day of trading in 2016, sparking a global selloff and renewing fears over the health of China’s economy, which slipped below 7% GDP growth in Q3 2015 for the first time since 2009. In spite of its slowing growth profile, China’s debt-fuelled economy has yet to embark on a process of deleveraging, compounding concerns over a credit bubble. This may generate an increase in corporate defaults as companies struggle to repay debt, especially in sectors hardest hit amid the slowdown, as indicated by escalating stress in the commodities, real estate and gaming industries.
Highlights and trends analyzed include:
Debt in China’s property sector continues to grow as an oversupply of unsold housing units causes further stress; Trouble brews for commodities as prices continue to fall with diminished demand for construction materials and a global surplus of output; Macau’s floundering gaming industry feels the backlash from China’s anti-corruption campaign; and An exclusive interview with Brandon Gale, Head of Houlihan Lokey’s Asia Restructuring Practice, on considerations and key challenges for both debtors and creditors engaged in distressed restructuring efforts in emerging Asia.
If you are interested in learning more about our bespoke research or if you would like your complimentary copy.
Please do not hesitate to contact me below. Best NM
Naveet McMahon
naveet.mcmahon@mergermarket.com
Publisher, Asia Pacific
The Mergermarket Group & FT Remark
Suite 1602-06 Grand Millennium Plaza
181 Queen's Road Central, Hong Kong
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