Shanshui Default Woes Hit China as More Bond Sales Scrapped
- 43 Chinese companies scrapped 46.7 billion yuan of bond sales
- About 65 percent of the issuers are rated AA or lower
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The default by China Shanshui Cement Group Ltd. is forcing more Chinese companies to scrap bond sales as yields surge.
About 43 companies have canceled or delayed 46.7 billion yuan ($7.3 billion) of notes since the cement maker issued a default warning on Nov. 5 before missing the payment, according to statements to Shanghai Clearing House and Chinamoney. In the 10 trading days after Baoding Tianwei Yingli New Energy Resources Co. defaulted last month, only nine companies scrapped a total of 8.8 billion yuan of bond issuance.