China told the world that it's the only country whose economy will grow at the end of the financial year. But it happened very reversely of what it had told. More and more companies in China are becoming defaulters there is panic among global investors.
At the start of the pandemic, china told the world that its steps to contain the virus has helped a lot in economic growth. Whereas the world could not contain the pandemic and there were rumours spread from china that even if the world economy will face slow down China's growth will increase.
Today there are very big companies in China that are backed by the state also default. There has been more than $6 billion which these companies could not pay back to bad loans.
China is currently the world's biggest creditor, It has given loans to many countries but today it is not able to pay it to own EMI.
There is panic among the global investors as there are names of very big automobile industry too. Among the defaulter company Brilliance group which is BMW's partner in China has a huge debt.
Brilliance group parent company that is Huachen Automobile industry has also got into debt. Tsinghua Unigroup state-owned company could not repay the principal on a $450 million bond and this company even holds an additional debt of $2 billion.
Another company which was called has China's grey Rhino which was also rated as 'triple a' named as Yongcheng coal and electricity as failed to pay back a bond worth a little more than $152 million.
China's local government is also under debt and is expected to touch $4 trillion. China's finance minister has raised alarm regarding the increase in debt.
Today in China money is drying up and lenders have completely lost their hope in the Chinese government as China is not interested in paying the debt of these companies. China has struck itself completely under the debt blanket.
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