China bankruptcies jump 53%YoY in Q1

china collapse

As the zombie lending goes on feeding overcapacity in the system the Chinese courts received over 1,000 bankruptcy filings in Q1 2016 which was 52.5% up on the previous year.

While the government hand is in it to tidy up zombie lending (a good thing) note our earlier piece which showed that Chinese manufacturing companies have taken the top 36 positions globally where accounts receivables to revenue is over 12 months

Recall one Chinese lender in the shadow finance market was repaying its investors in fire water as compensation and Chinese fixed asset investment is at 16 year lows.

It will take a mighty long time to get out of this mess.




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