China cost of property bonds rising 40% in 15 months.

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A recent Bloomberg article suggests we might be seeing some defaults from Chinese property developers as the cost of refinancing continues to rise.

The chart above indicates a close to 40% increase in the cost of borrowing (measured by coupon rates on property bonds) over the past 5 quarters, so call it the past 15 months.

Although Beijing could step in at any time if this was to get out of control, it will be worth keeping one eye on.

Mike

NextLevelCorporate is a leading strategic corporate advisory firm that independently advises on and arranges transformative corporate finance solutions to clients looking to transform their businesses, in and out of Australia. You can subscribe to our quarterly newsletter here.

Michael Ganonchina, money, interest rates, economy, corporate finance, ipo, growth capital, special sits, nextlevelcorporate