Beijing's policies may not save China Inc from more debt defaults in 2019

Chinese President Xi Jinping in November repeated 'unwavering' support for the private economy and pledged more measures such as tax cuts and financial support

China’s stimulus policies may not be enough to jump-start profit growth at the nation’s corporations, raising the prospects of more debt defaults next year, analysts say.

The world’s second-largest economy is expected to expand 6.2 per cent in 2019 from 6.6 per cent this year. Profits among industrial companies grew the least in seven months in October. The data don’t bode well for corporations’ ability to service their debts in 2019 after a record year of local bond failures in 2018.

“As credit lending and property sales are slowing down, private firms will face increasing liquidity pressure if their ability to make