Concerns about the health of China’s economy and the integrity of Chinese companies’ financial statements have led to postponed US-dollar bond issues for two China-based companies, the Wall Street Journal reported. Both GCL-Poly Energy Holdings (3800.HK), a solar panel producer, and China Qinfa Group (0866.HK), a thermal coal supplier, had planned to issue bonds on the Hong Kong market in the near future, but sources now say that weak investor appetite for China stocks has led them to push back their offerings. Other sources say three unnamed Hong Kong-listed blue chip firms also decided to put off combined US$1 billion bond issues for the same reason. Analysts point to investor concerns about a “hard landing” for the Chinese economy, along with a renewed focus on the corporate governance of many China-focused companies, as the causes of weak investor demand.
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