Two large Chinese borrowers have failed to make bond payments on time this month, sources told Bloomberg. The news is fuelling concerns that risks remain high in China’s $11 trillion bond market, with a number of overly leveraged companies.
The companies in question are China Minsheng Investment Group, a large private investment firm that invests mainly in renewable energy and property, and Wintime Energy Co, a major coal energy firm.
Wintime Energy already defaulted last year, and has now failed to make a payment due last week as part of its debt restructuring plan, according to Bloomberg.
China Minsheng now appears to be at risk of following a similar path. If it did so, it would rank as one of the largest defaults in China alongside Wintime, as the investment group has $34.4 billion of outstanding debt.