Materials firm misses bond payment

China Xuzhou Zhongsen missed a 10% coupon payment due March 28 for its high yield bond, in what would be the second default for China’s onshore corporate bond markets, Bloomberg reported, citing a report by 21st Century Business Herald newspaper. The materials company’s default may signal that the government is developing a higher tolerance for corporate bond defaults, prompting investors to reassess risks in credit products. This follows the default of solar company Shanghai Chaori (002506.SHA) and the collapse of property developer Zhejiang Xingrun, all of which failed to pay interest on their high-yield bonds.