The Chinese bond market is in turmoil.
For three weeks a series of debt defaults has upset the fundamentals of the second largest bond market in the world.
Normally limited to bonds issued by private companies, this time the defaults affected state-owned enterprises including Tsinghua Unigroup, national champion linked to the prestigious Tsinghua University - the company was among other things to participate in the collective effort to develop a semiconductor industry - Brilliance Auto Group, and Yongcheng Coal and Electricity.
In turn, Yongcheng's difficulties could impact its parent companies, Henan Energy and Chemical Industry Group.
A total of 50 billion RMB (6.4 billion euros) are at stake. October is the first month in which the defaults of bonds of state-owned enterprises exceed those of private enterprises.
Since then, at least 20 companies have suspended their issuance of securities for a total of 15.5
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