China Developers Face Default Risk as Cash Squeeze Hits

The video discusses the challenges faced by Chinese developers due to a crackdown on shadow financing, which accounts for a significant portion of their funding. The onshore bond market is largely shut, and offshore markets demand high yields, increasing default risks. Developers face a refinancing wall with record debt maturities, raising concerns about systemic problems. The potential repercussions include impacts on banks and the construction industry, with the developer market estimated at $22 trillion.

What impact has the crackdown on shadow financing had on developers in China?

What is the estimated probability of developers missing payments this year according to Bloomberg's model?

What does the term 'refinancing wall' refer to in the context of the developer market?

How much in bonds will developers need to pay back through 2019?

What are the potential repercussions if developers in China falter?