China saw a record number of corporate defaults emerge on Tuesday, with Zhejiang-based manufacturing conglomerate Neoglory Holdings making headlines with $400 million of missed payments.
Neoglory came up short on two payments on Tuesday, the first worth RMB 1 billion ($146 million), the second RMB 1.74 billion ($254 million), according to Caixin, citing data from the Shanghai Clearing House.
Neoglory was joined by several other private companies which missed payments on Tuesday, marking what some have called the “darkest day” for China’s bond market as the private sphere continues to feel the squeeze of Beijing’s earlier credit tightening.
China has recorded defaults at an accelerating rate in 2018. Between January to June, 13 companies defaulted on 20 corporate bonds totalling RMB 14.2 billion – over half the entire value of failed bonds in 2017, according to the China Central Depository & Clearing Co.