News Analysis
Chinese enterprise CIFI Holdings (00884.HK) recently announced that it had suspended all foreign debt payments due to deteriorating cash flow but would repay domestic debts to maintain domestic financing. This may indicate that Chinese firms are now cutting off their international capital ties amid tightened policies and turning to domestic investment to survive.
CIFI Holdings stated on Nov. 1 that it was suspending principal and interest payments to all overseas creditors, citing weakening sales and stagnant cash flow since September. And despite its “largest efforts, it failed to generate sufficient cash to meet current and future obligations.”
As of Nov. 1, CIFI Holding’s foreign debt—including bank loans, senior notes, and convertible bonds—totaled approximately $6.85 billion, with the total outstanding principal, interest, and related surcharges at roughly $414 million….