The world’s factory is in trouble. While China held onto its title as the world’s largest manufacturer in 2018, the Sino-US trade war took its toll on its companies’ balance sheets, leading to a marked pick-up in defaults so far this year.
This trade-induced credit stress has been further compounded by the fact that so many Chinese manufacturers are small and medium private sector entities, which struggle to obtain financing from a banking sector that prioritizes companies with explicit or implicit government guarantees.
Christopher So, a partner of PwC’s Hong Kong restructuring and insolvency practice, told Finance...
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