Stress Is Building in China's $12T Onshore Credit Market

The transcript discusses the credit stress in China's onshore and offshore markets. Onshore, developers are defaulting due to prioritizing onshore debt amidst a lagging property market. The People's Bank of China is advising banks against buying certain bonds. News of project completions is not boosting investor confidence, as it merely extends existing loans. Offshore, credit stress has eased slightly, but major developers still face significant challenges, with potential restructuring and bond payments looming.

In what ways are investors reacting to the news about credit stress and defaults?

What implications do the potential restructurings of major developers have on the offshore market?