Source: Bloomberg
The sluggish China economy is caused by unexpected corners in the European garbage -level credit market. Some companies have been pushed to debt restructuring because of the "far away" incidents.
Taking the German elevator parts manufacturer Wittur Holding GMBH as an example: After the breakdown of the Chinese property market in the main market, the company's revenue declined sharply.The construction of new buildings is almost suspended and demand has dried up.In the end, the company's debt burden beyond the scope of tolerance. Its shareholder Bain Capital and a Canadian pension fund transferred the ownership of the company to the creditors KKR Co.
With the continuous and economic slowdown of the Chinese property market, there may be many similar cases.In the era of abundant funds, the acquisition of the company's loan from European companies, and many of the companies are now facing a double blow: the cost of borrowing has soared, and the market with the fastest growing growth has fallen into a downturn.According to the EU statistics, the situation has been bad, and the EU exports to China will have a decline in the first year since 2002.
"Companies with concentrated business and high debt -raising are limited in responding to financial challenges, so for them, the slowdown in Chinese demand will bring difficulty and credit risk," said SVITLANA UkrayineTs, an analyst of Moody's Frankfurt.
Moody's estimation is that the impact of China's economic slowdown will not be systematic. It is expected that among European companies that provide credit rating, the average income is only 8%from China, but it will affect the Chinese market seriously in many industries.Enterprise.
