China’s great debt restructuring has begun

China’s great debt restructuring has begun. According to Caixin News, Guangxi Nonferrous Metals Group Corporation was formally declared bankrupt on 12 September after several years of restructuring.

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At first glance this may appear to be somewhat of a non-event, after all, they have been a number of corporate bankruptcies and restructurings across China already this year. However, as Nomura’s Asian economic’s research team points out in a research note issued earlier this week, the Guangxi Nonferrous Metals bankruptcy is a landmark case for China as it is the first bankruptcy case in the interbank bond market.

China’s great debt restructuring has begun

The Chinese bond market is one of the...