Enterprises to have difficulties managing cash flows to pay principal and interest on bonds

Analysts have forecast that enterprises will face difficulties managing cash flows to repay bond principal and interest in upcoming quarters due to two reasons. Firstly, the corporate bond market has shrunk significantly since the beginning of the year, and secondly, cash flows into subsidiaries are controlled by Circular No. 16, Circular No. 39, and soon Decree No. 65. Meeting debt obligations is expected to be more difficult in the context of interest rates continuing to rise, which increases the burden of interest costs on many enterprises, especially those in capital-intensive industries where credit is difficult to access, like real estate.