www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / Markets

Huatong warns of possible default on bonds

By Gao Changxin in Shanghai (China Daily) Updated: 2014-07-18 07:17

Construction firm cites inability to make interest, principal payments

China appears to be heading for another domestic bond default after Huatong Road & Bridge Group Co, a Shanxi-based construction firm, said on Thursday it was not sure whether it would be able to pay interest or principal on a 400 million yuan ($64.5 million) one-year bond set to mature next Tuesday.

In a statement, the company blamed the payment uncertainties on an ongoing official investigation into its chief executive. A statement issued by the Shanxi Committee of the Chinese People's Political Consultative Conference said Wang Guorui, the company chairman, has been removed from his position on suspicion of law violations.

The note in question, with a coupon of 7.3 percent, has no guarantees. Huatong is supposed to pay back the principal amount of 400 million yuan and 29.2 million yuan as interest next Tuesday. China Guangfa Bank was the bond's lead underwriter.

Huatong warns of possible default on bonds
Huatong warns of possible default on bonds
China Lianhe Credit Rating Co Ltd, on Thursday lowered Huatong's rating to BB+ from AA-, after Huatong made the announcement.

Huatong is operating at a profit at the moment. Public statements show that the company made a profit of 300 million yuan in 2013 and 65 million yuan in the first quarter of this year. The company is also believed to have ample liquidity, with 1.9 billion yuan of its 10.7 billion yuan total assets being in cash at the end of March.

Deng Haiqing, chief fixed-income analyst with CITIC Securities, said that a default by Huatong is "probable", but that would be a stand-alone incident as it was caused by an investigation against the company's chairman.

China Lianhe Credit Rating said in a statement that Huatong needs the authorization of Wang, who holds over 60 percent stake in the company, to move funds.

In March, Shanghai Chaori Solar Energy Science & Technology Co missed a coupon payment on its domestic bond, marking the first default in China's bond market. Rates in the bond market went through a correction following the default to price in higher risks. A default by Huatong might send bigger ripples as it would be the first to fail to pay both interest and principal, and would also be the first default in the interbank note market, the nation's biggest bond market.

China's corporate bond market has evolved quickly over the past decade to become the world's third biggest, behind only the United States and Japan. According to the Asian Development Bank, corporate bonds outstanding in China totaled 8.5 trillion yuan at the end of last year, up from 500 billion yuan at the end of 2005.

Defaults in China's bond market are rare, though there have been instances of Chinese companies defaulting in the international market.

Some experts feel that domestic bond defaults are a positive development for China, as it shows that the market is maturing.

Hot Topics

Editor's Picks
...
...
主站蜘蛛池模板: 国产一级片播放 | 亚洲精品综合 | 日韩在线国产精品 | 欧美成人性色区 | 亚洲综合第一欧美日韩中文 | 日韩综合色| 日韩免费一级毛片欧美一级日韩片 | 美女很黄很黄 | 亚洲女人被黑人猛躁进女人 | 成人自拍视频网站 | 欧美一区二区三区国产精品 | 国产2区| 国产福利一区二区在线精品 | 美女一级毛片免费不卡视频 | 99爱视频精品免视看 | 日韩精品欧美国产精品亚 | 香蕉三级 | a级毛片在线观看 | 涩涩国产精品福利在线观看 | 一级特黄aaa大片在线观看 | 国产精选莉莉私人影院 | 美女脱了内裤张开腿让男人桶网站 | 久久久久久久久久毛片精品美女 | 91寡妇天天综合久久影院 | 久久精品国产福利 | 欧美人成在线 | 草草影院第一页yycccom | 日本欧美一级二级三级不卡 | 亚洲一区免费在线 | 欧美日本高清视频在线观看 | 日日爱影院 | 日本一级毛片高清免费观看视频 | 看一级毛片一区二区三区免费 | 成年网站在线在免费播放 | 亚洲第一区在线 | 撸天堂| 黄色成人在线网站 | 亚洲大片免费观看 | 免费国产视频在线观看 | www日本高清 | 中国美女牲交一级毛片 |