Two major Chinese borrowers miss bond payments, Bloomberg says
February 12, 2019
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.