Five China Bond Deadlines to Watch
- CICC, Haitong, Guotai Junan flag five companies on liquidity
- Yield premium on five-year AA- corporate notes has jumped
This article is for subscribers only.
A chemical producer, chicken processor, a sausage maker, a tin smelter and a coal miner have something in common. Surging losses and high leverage have prompted brokerages to put red flags on their debt.
China International Capital Corp., Guotai Junan Securities Co. and Haitong Securities Co. all flagged the five companies’ liquidity risks this month after China Shanshui Cement Group Co. became at least the sixth firm to default in the onshore bond market on Nov. 12. Corporate notes are suffering, with the yield premium for five-year AA- rated debentures over the sovereign widening 19.8 basis points this month, the most this year.