Shanghai Chaori Solar Energy Science & Technology (002506.SHE) failed to pay interest on a bond on Friday, leading to China’s first domestic corporate bond default, The Wall Street Journal reported, citing a statement from the company’s board secretary Liu Tielong. The heavily indebted solar equipment-maker had warned on Tuesday that it wouldn’t be able to meet interest payments totaling US$14.7 million (RMB 89.8 million), citing a credit squeeze and its inability to raise enough funds to make the interest payments. So far, the Chinese government and state-owned banks have largely kept risky borrowers afloat.
Categories