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China SOE Bond Default Triggers Panic: News

CHINA PRESS
MNI (Sydney)

Chinese state-owned Yongcheng Electricity Coal Group has defaulted on CNY1 billion of triple-A bonds, causing panic and driving the prices of similar bonds issued by SOEs and local government financing vehicles around 10% lower on Thursday, according to the Shanghai Securities News. Issuers will continue to see high interest rates on bonds in Q4, the newspaper reported citing Wang Qing, the chief economist with Golden Credit Rating. Credit conditions are expected to tighten next year so highly leveraged corporations will have difficulties servicing bonds, the News reported citing a report by Industrial Securities.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com

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