HNA boss downplays debt, signals Hainan Airlines expansion
HNA Group boss Chen Feng recently outlined plans to further grow Hainan Airlines at a business forum in Sanya, but avoided discussing the conglomerate’s current debt crisis. Growing HNA’s flagship airline is a key part of HNA’s goal of reaching a higher position in the Fortune 500. Given HNA’s current debt concerns, with its credit rating slashed and some banks refusing to lend, it’s unclear what the group’s path forward is.
IMF and analysts raise more concerns about health of Chinese economy
The IMF and Moody’s have raised fresh concerns about the debt levels in the Chinese economy. Much of China’s rapid economic growth in the past few years has been driven through credit-funded development projects, but this has left many local governments deeply in debt. Perhaps even more troubling is the debt of major state-owned enterprises, whose debt-levels often surpass that of municipalities and counties. Strict limits on the ability of firms and governments to take on debt has forced many to seek alternative, and riskier, sources of capital, increasing potential economic risk.