男友太凶猛1v1高h,大地资源在线资源免费观看 ,人妻少妇精品视频二区,极度sm残忍bdsm变态

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: 宿松县| 鄯善县| 沅江市| 青州市| 开封县| 德阳市| 合川市| 兴隆县| 丰原市| 安化县| 和龙市| 河东区| 越西县| 四平市| 贵定县| 方山县| 中方县| 灵台县| 宁津县| 镇康县| 静乐县| 长泰县| 青河县| 砀山县| 营山县| 墨脱县| 启东市| 微山县| 舟曲县| 丹东市| 大悟县| 亚东县| 西城区| 淮北市| 石景山区| 赤城县| 科尔| 清水县| 卢湾区| 福建省| 嵩明县|