Tag Archives: China Forestry

Construction Firm Joins Public Debt Default Queue

Default looms for Huatong bond

Yet another firm is teetering on the brink of default for a relatively large bond, joining a small but growing list of such companies as Chinese investors learn about the risk of buying debt from shaky companies in struggling industries. This time it’s a little-know construction company called Huatong Road & Bridge Group  that’s warning it could soon default on interest and principal payments for 400 million yuan ($65 million) in bonds set to mature later this month. The announcement is the latest of a slow but steady trickle of similar news that hints at distress due to China’s slowing economy. Read Full Post…

New Default, Merchants Bank Move Spotlight China Risk

Merchants Bank goes to Luxembourg

A couple of headlines are underscoring the high risk that China’s financial sector could soon pose for both domestic and international investors, as the nation’s financiers look for the most creative but not necessarily the safest ways to raise money. In the first instance, China Merchants Bank (HKEx: 3968; Shanghai: 600036) has officially joined the nation’s big national banks in a move to Europe, choosing the free-wheeling Luxembourg market as its first destination. Meantime, media are reporting that yet another domestic Chinese financial product is about to default, joining a growing list of such distressed high-yield offerings. Read Full Post…

China Forestry Joins Debt Default Queue

China Forestry misses bond payment

The list of Chinese companies defaulting on their bonds continues to grow, with word that timber firm China Forestry Holdings (HKEx: 930) has missed an interest payment as it tries to repurchase the notes. I’ll admit that one reason I’m focusing on this news is because of a recent conversation I had with a Chinese banker, who explained to me what happens behind-the-scenes when companies have difficulty making bond payments. That explanation shows why we haven’t seen too many bond defaults yet, despite constant media reports that China’s banks are struggling under mountains of unreported non-performing loans. Read Full Post…

News Digest: June 26, 2014

The following press releases and media reports about Chinese companies were carried on June 26. To view a full article or story, click on the link next to the headline.
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  • China’s Postal Savings Bank Said To Plan $4 Bln IPO (English article)
  • Vanke (HKEx: 2202) Completes Transition of B-Shares To H-Shares (Chinese article)
  • Best Buy (NYSE: BBY) Considers Sales Of China Business – WSJ (English article)
  • Skyscanner Acquires Chinese Travel Search Start-up Youbibi (Businesswire)
  • China Forestry (HKEx: 930) Extends Bond Buyback After Missed Payment (English article)