China Ghost Town Developer to Avert Default as Xi Prevents Risks
- Ordos City Huayan said it will repay bond principal on Dec. 18
- Firm has importance to the local government, Guotai Junan says
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A Chinese ghost town developer is set to avert bond default following a string of debt failures at other companies, just days after President Xi Jinping vowed to prevent systemic financial risks.
Ordos City Huayan Investment Group Co., based in the northern region of Inner Mongolia, will repay bonds that investors chose to sell back Thursday on Dec. 18, it said in a statement on the Shanghai Stock Exchange’s website. The company had planned to make the payment Thursday and the delay is due to technical issues with a funds transfer, the company said without elaborating.