Bankruptcies in China likely to rise but government won’t tolerate job losses: Fitch

SINGAPORE (Aug 10): Tighter financial regulations in China are taking effect and bankruptcies are on the rise as local authorities are becoming more accepting of them, says Fitch Ratings.

Insolvency cases in China rose to 5,665 in 2016 compared to 3,684 in 2015. Fitch believes China is on track for another large jump in 2017, as according to Supreme People’s Court data, 4,700 cases were filed as of June.

Fortunately, the cases resolved also increased by 46% y-o-y as it reached 3,602 in 2016 from 2015. From January to June 2017, 1,923 cases have been resolved.

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