Huatong Road & Bridge Group paid all principal and interest on RMB400 million (US$65 million) worth of corporate bonds on Wednesday, averting the specter of another corporate default in China, Bloomberg reported, citing anonymous sources. Huatong raised the funds with help from local governments and bond underwriters, after warning last week it might miss the payment. Speculation is mounting that nonpayments will increase in China’s US$4.2 trillion bond market as policymakers try to balance the risk of letting weaker companies fail with market stability. Chaori Solar (002506.SHE) was the first to default in March when it didn’t meet an interest payment.
Categories