Jiangsu Hongtu High Technology Co. Ltd. and Nanjing Construction Industrial Group Co. Ltd., two of the largest private-sector companies in the eastern city of Nanjing, have become the latest to join the wave of corporate debt defaults in China, reported Caixin.
According to research by Everbright Securities Co. Ltd., China’s $13 trillion bond market before the latest defaults had already recorded 79 defaults this year involving RMB 53.77 billion ($7.8 billion). The total has now surpassed RMB 56 billion.
Shanghai-listed retailer and electronics manufacturer Jiangsu Hongtu failed to make interest and principal payments due Monday on RMB 700 million of medium-term notes issued in 2016. Nanjing Construction, which mainly works on municipal engineering projects, failed to pay interest and principal due Friday on RMB 2 billion of privately placed green bonds issued in 2017.