Cloud Live Says Will Miss Payment in 2nd China Onshore Default
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China’s corporate bond market may experience its second default after Internet company Cloud Live Technology Group Co. said it will miss payments, and Premier Li Keqiang said the nation will tolerate individual cases of financial risk.
The big data provider, which shifted into that industry in July after corruption probes hurt its former restaurant business, will fail to meet an April 7 deadline to pay investors who had exercised an option to sell back notes, the company said in statements to the Shenzhen stock exchange on Monday. Failure to pay would constitute the second default on an onshore yuan debenture.