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Chinese lessors warn on rising shipping defaults

A wave of bad loans may begin to unfold in the next three to six months. Shipping companies will be forced to sell off assets to stay afloat if the economic situation does not improve. The risk appetite of Chinese lessors has also decreased this year, with extra caution being exercised for new deals

But bank-backed leasing houses are said to be financially confident as they can tap the inter-bank market for liquidity rather easily

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