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

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