Huatong Road & Bridge Group said on Wednesday that it may not be able to pay interest or principal on a RMB400 million (US$64.48 million) one year bond maturing on July 23, which it blamed on an official investigation into its chief executive, Reuters reported. That would be the first time China’s interbank bond market – the primary platform for China’s institutional fixed income investors, hosting 94% of the country’s bond issues – has seen a public default, and the first time a Chinese company has openly defaulted on both interest and principal for a bond.
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