China’s “Government-Backed Companies Are Missing Payments. How Bad Is China’s Debt?

China’s real-estate crisis has crossed another line.

Zhuhai Huafa Group, one of the country’s largest local-government-owned conglomerates, has missed payments on two trust products. It has also asked at least three banks to extend existing loans.

Huafa isn’t some obscure private developer that borrowed too much during the housing bubble. State-owned. This is a major escalation.