Pursuits
Global Bondholders Caught in China Cement Consolidation Push
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A push by authorities in China to shrink the nation’s cement industry has caught global bond investors in the middle.
China Tianrui Group Cement Co. last month increased its stake in China Shanshui Cement Group Ltd. to 28.16 percent, more than Shanshui founder Zhang Caikui. Fitch Ratings Ltd. deemed the move a change of control. It also downgraded Shanshui to BB- , three levels below investment grade, citing weak cement prices. A change of control also allows some of the company’s dollar bondholders to demand immediate repayment.