Baoding Tianwei Default Exposes Weaknesses in China Solar Sector
This article is for subscribers only.
Baoding Tianwei Group Co.’s default on an onshore bond, the first by a state-owned company in China, exposes the toll a glut of solar manufacturing has inflicted on some of the smallest and financially weakest producers.
The default resulted from “errors in operation and decision-making” amid oversupply that led to a plunged in prices and profits at photovoltaic manufacturers three years ago, said Meng Xiangan, vice chairman of the China Renewable Energy Society, an industry group.