Very odd

BI:

China’s slowing economy has led to companies in the country defaulting on their debt. But state-owned companies, with their sturdy shield of government ownership, haven’t followed suit.

That was until Friday, when, for the first time in two decades, a China-owned company failed to make a payment on its debt burden.

Qinghai Provincial Investment Group, which was downgraded by S&P Global Ratings to junk status, failed to pay an $11 million interest payment on an offshore $300 million bond last week, the agency said.

QIPG then missed a separate principal and interest payment on a 20 million yuan ($3 million) onshore renminbi bond that matured on Monday, the Financial Times said, citing Caixin. Qinghai Provincial is the largest aluminum producer in Qinghai and majority-owned by the provincial government

We’ll comment when we learn more about this. Meanwhile mfg continues down.

One Response to “Very odd”

  1. feeblemind Says:

    hmmmmmm . . .

    One wonders what the Chinese financial bureaucracy is thinking?

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