3-Point Analysis | Tewoo group default: What this means for China

Chinese commodities trader Tewoo Group is the first state-owned company to default on US dollar-denominated bonds in two decades. While the Chinese government is taking measures to alleviate its debt through fundraising and interest rate cuts, delinquencies continue to rise as the Asian country is witnessing its worst economic slowdown in nearly three decades.

The default highlights that corporate stress has aggravated and Beijing is finding it difficult to contain credit risk in a weakening economy.

Moneycontrol’s Sakshi Batra does a 3-Point Analysis on what this default could mean for China.

Watch the video for more.