Two Large Chinese Borrowers Said to Miss Bond Payments

The video discusses the significant increase in corporate defaults in 2018, with expectations for continued growth in 2019. It highlights two major companies, China Minsheng Investment and Wind Time Energy, facing financial difficulties. Analysts attribute these issues to short-term borrowing against long-term investment cycles. Kyle Bass provides insights into the risks associated with China's bond markets, particularly concerning dollar-denominated debts. Despite the defaults, they represent a small part of China's economy and may introduce necessary financial discipline.

How do China's domestic market controls affect its ability to manage defaults?

What perspective is provided regarding the scale of defaults in China compared to the global context?