China sees first onshore bond default with Baoding Tianwei
China, Beijing: Baoding Tianwei Group Co., a Chinese power transformer maker has become the first state-owned firm to default on a bond payment in modern China, Chinese state media reported yesterday.
China, Beijing: Baoding Tianwei Group Co., a Chinese power transformer maker has become the first state-owned firm to default on a bond payment in modern China, Chinese state media reported yesterday.
After it flagged bond risk and huge losses in its alternative energy business last week, Baoding Tianwei Group Co. stated in a filing on Tuesday with the Shanghai Clearing House that it had failed to make this year’s coupon payment worth $13.8 million (85.5 million yuan) on a domestic issue due the same day, reports Yahoo News.
The power transformer maker is a subsidiary of major defence equipment maker China South Industries Group Corporation, which is directly owned and run by the central government.
The event marks the first time a state-owned enterprise has defaulted on an onshore bond, the Beijing News reported on Wednesday.
Source: Yahoo News
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