www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Economy

Local governments 'need to refinance debt'

By Emma Dai in Hong Kong (China Daily) Updated: 2014-01-15 10:44

Local governments 'need to refinance debt'

In the past years, local governments have borrowed heavily to finance infrastructure projects. If defaults on debt repayments occur, experts say it could cause a confidence crisis. Chen Zhuo / for China Daily

Repayments, default possibilities might affect infrastructure projects, experts say

Chinese local governments will issue new debt in 2014 to repay old loans, since a large amount of local government debts will mature in the near term, said analysts in Hong Kong.

"Based on National Audit Office data, this year and early 2015 will be the peak repayment period for local government debt," said Paul Chan, chief Asia ex-Japan investment officer of Invesco Ltd.

"This is a maturity mismatch problem. In 2009, in order to support growth, the government really needed a lot of money to start infrastructure projects. However, it's not realistic to ask for the repayment of both principal and interest, if a tunnel was built only three years ago."

Chan pointed out that local governments need to roll over their debts. This could be done through bank financing or issuing corporate bonds.

"Hopefully, they will choose bonds, because liquidity is tight on the mainland, and that's expected to continue," he said.

"Banks will have to issue preferred shares first to prop up their capital bases, if they are financing these rollovers."

He added: "As the Hong Kong stock market started to pick up in the fourth quarter, and the IPO freeze in the A-share market has ended, hopefully that will provide an alternative channel to refinance the debts."

"Hot money leaking into China will also be interested in buying debt, but only the high-yield variety," he said. "We expect net capital inflows into the mainland market this year, as foreign exchange reserves are accumulating fast while exports haven't made a strong recovery."

However, not all creditors will be repaid, Chan said.

"There will be defaults because some projects didn't get the necessary approvals in 2009 and 2010. They will face difficulty in rolling over their debt," said Chan.

"It's also a chance for the government to mull over what projects to keep. For those with the right documents, I think Beijing will sign the check," he said.

"Whether the central government will allow defaults depends on the impact. It could trigger a chain reaction and lead to a confidence crisis," said Chris Leung, senior economist of DBS Bank (HK) Ltd. "It's less possible to see large-scale defaults.

"However, even with rollovers, a lot of maturing debts won't be repaid on time," said Leung. "The scenario will boost interbank rates on the mainland, because the risk premium is due to be high this year."

Leung said the situation could affect the pace of interest rate liberalization on the mainland, because a freer market would add pressure to the already high rates. "So if the debt problem can't be worked out properly, it will drag on financial reforms in China."

...
...
主站蜘蛛池模板: 日本免费观看的视频在线 | 日韩 欧美 国产 师生 制服 | 97国产在线播放 | 美国美女一级毛片免费全 | 加勒比色久综合在线 | 亚洲欧美国产精品 | 欧美在线视频不卡 | 97在线免费观看视频 | 最新国产大片高清视频 | 亚洲国产日韩欧美一区二区三区 | 国产成在线观看免费视频成本人 | 久久国产欧美日韩精品 | 久久久久久久久久毛片精品美女 | 免费嗨片 | 久久的精品99精品66 | 日韩专区亚洲国产精品 | 国产或人精品日本亚洲77美色 | 亚洲福利影院 | 国产亚洲精品影达达兔 | 久久精品国产免费一区 | 国产日韩精品视频一区二区三区 | 欧美日韩一区二区三在线 | 国产三级视频在线 | 国产成人一区二区三区影院免费 | 久久精品亚洲一区二区 | 12至16末成年毛片视频 | 国产一区免费在线观看 | 久草免费资源视频 | 亚洲国产品综合人成综合网站 | 亚洲小视频在线观看 | 久久在线免费视频 | 欧美日产国产亚洲综合图区一 | 日本精品99 | 亚洲一级二级三级 | 亚洲免费视频网 | 中文字幕曰韩一区二区不卡 | 精品一区二区三区四区在线 | 日本加勒比系列 | 久久久久在线观看 | 9999毛片免费看 | 伊人网在线免费视频 |