Bond default risks rising for corporates

Economists forecast that more bond defaults may occur in the coming months, which reflects the government's efforts and confidence for deleveraging.

Global credit ratings agency Fitch Ratings said in a report that corporate bond defaults are expected to continue in China's onshore market during the rest of this year and stretch the tolerance levels of policymakers.

According to the agency's estimates, about 4 trillion yuan ($628 billion) of bonds, which were issued in 2015 and 2016 when credit conditions were loose and the bond market entry barriers were low, will become due in 2018 and 2019 respectively.