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Nomura, an investment bank, published a research report, saying it estimated that the outstanding offshore US dollar debt of Chinese enterprises rose to US $876.8 billion in the third quarter, and the annual growth rate slowed to 13.4% from 14.4% in the second quarter; it estimated that enterprises will have an average of US $40.7 billion of debt maturing in each quarter in the next year from the fourth quarter of this year, while the second quarter of next year will be the quarterly peak of debt repayment.
In addition, the bank expects that the offshore US dollar bond market of Chinese enterprises will face more disadvantages in the next few quarters under the influence of factors such as rising repayment pressure, RMB devaluation, slowing economic growth, declining profit growth and potential spillover effects of financial risks in the mainland.
The report estimates that in the third quarter of this year, the issuance of offshore US dollar bonds by Chinese enterprises decreased from US $80 billion in the second quarter to US $54.7 billion, less US $28.2 billion in debt repayments due, bringing the net debt financing in the third quarter down 18.7% on a quarterly basis to US $26.5 billion. Outstanding debt rose from $850.3 billion in the second quarter to $876.8 billion in the third quarter.
The bank expects that the second quarter of next year will be the peak for the repayment of offshore US dollar debt of Chinese enterprises, with us $47.3 billion expected to mature, while the largest monthly maturity of US $19 billion is expected in May next year.
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