A Baoding Tianwei Baobian Electric (TBE) bond was suspended from trading on Tuesday, fueling more fears of corporate bond defaults in China this year. The company has not declared bankruptcy yet but the Shanghai Stock Exchange said the TBE stock faces the risk of being delisted in the next year if it cannot turn profitable, according to a note from Bank of America Merrill Lynch issued on Wednesday. TBE’s Shanghai-listed bond was issued in 2011, with principal at US$260 million (RMB1.6 billion), 5.75% yields and 7-year tenor, the bank said. TBE’s controlling shareholder is Tianwei group, a central-government owned company.
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