China Sees First Domestic Corporate-Bond Default
A Chinese solar-equipment maker failed to meet interest payments on a bond, according to an official there, becoming China's first domestic corporate-bond default.
Liu Tielong, board secretary of Shanghai Chaori Solar Energy Science & Technology Co., said that it was in default. The heavily indebted company had warned on Tuesday that it wouldn't be able to meet interest payments totaling $14.7 million, citing a credit squeeze and its inability to raise enough funds to make the interest payments.
The default, though small in size, marks the first time a Chinese company has defaulted on a bond traded in the mainland, according to Moody's Investors Service.