Forex Videos

How many Chinese debt defaults will it take to alert the International business community to the risks of an economic slowdown in the land of communist managed capitalism. Reuter reports that Chinese bottle maker Zhuhai Zhongfu is likely to miss a bond repayment. Regulators show increased tolerance for bond defaults even as economic growth slows. If the company misses the payment it will mark the 4th public bond default in China's onshore bond market. This will be the 4th recent default in China's internal bond market. And corporate bond defaults offshore by Chinese companies are happening more frequently.
Our concern is that Chinese debt defaults are tip of iceberg and Chinese economy and yuan are set for a fall. This is reminiscent of Greek debt crisis in which bond investors demand a higher interest rate in return for taking on more risk. Chinese debt defaults could be felt by economies andn investors that deal with china. The yuan will likely fall if the economy in china tanks. How far will this go until there are more and more debt defaults and damage to chinese currency.