本期看点

· Compared with the past 3 years (+74% for 2017, +50% for 2018,+c.20% for 2019), the number of insolvency cases in China is expected to keep growing at a relatively high pace in 2020 (+c.21%, up from +c.15% in previous expectation considering COVID-19 impact).

· The number of new bond default companies in Chinese market decreased from 44 in 2018 to 39 in 2019, and recorded 8 in 1H2020. The downward trend in 1H2020 is due to increasing liquidity injected by central government to fight against COVID-19.

· The official manufacturing PMI in March shows the overall manufacturing industry is gradually recovering with large enterprises showing relatively better performance than small and medium-sized enterprises (SMEs).

· New RMB loans from financial institutions totaled RMB 12.09 trillion / EUR 1.52 trillion in 1H 2020, a large increase from RMB 9.67 trillion / EUR 1.22 trillion for the same period last year.

· On April 3, 2020, PBOC, the central bank of China, announced to release around RMB 400 billion / EUR 50 billion via cutting the reserve requirement ratio (RRR) for small and mid-sized banks by 1% in two equal steps, the first effective as of April 15 and the second as of May 15.

· With COVID-19 sweeping across the globe, full recovery could take longer.

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